TUESDAY, 28 MARCH 2006 __

                PROCEEDINGS OF THE NATIONAL ASSEMBLY

                                ____

The House met at 10:02.

The Deputy Speaker took the Chair and requested members to observe a moment of silence for prayers or meditation.

ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS – see col 000.

                          NOTICE OF MOTION

Mrs C DUDLEY: Madam Speaker, I hereby give notice that on the next sitting day of the House I shall move on behalf of the ACDP:

That the House -

 Debates the impact of political party funding on multiparty democracy:
 If the playing field is not level, then smaller parties, that represent
 a percentage of the electorate, are put at a disadvantage in reaching
 their electorate by not having sufficient funds.

SOUTH AFRICAN MEDAL WINNERS CONGRATULATED ON THEIR ACHIEVEMENTS AT THE COMMONWEALTH GAMES IN MELBOURNE

                         (Draft Resolution)

The CHIEF WHIP OF THE OPPOSITION: Madam, I hereby move without notice:

That the House -

(1) Congratulates the South African medal winners on their achievements at the recent Melbourne Commonwealth Games;

(2) recognises the honour and credit they brought to our country; and

(3) thanks every member of Team South Africa for the way in which they competed and the example which they set for young South Africans, by providing them with a positive role model for the future.

Agreed to.

                         APPROPRIATION BILL

Debate on Vote No 18 – Social Development: The MINISTER OF SOCIAL DEVELOPMENT: Madam Speaker, hon Deputy Ministers and Ministers, hon members, MECs for social development, distinguished guests, representatives of civil society in the public gallery, ladies and gentlemen, it is my honour to present to you Budget Vote 18, which speaks to the social development dimensions of the age of hope to which President Mbeki referred in his state of the nation address earlier this year.

Most social indicators confirm that our people are firmly convinced that our country has entered this age of hope. This Budget Vote complements our people’s confidence in our government, and details actions that will attempt to meet the expectations of those people in our society who continue to live in extreme poverty and who are marginalised or face particular vulnerabilities.

Over the Medium-Term Expenditure Framework (MTEF) period, government has set aside R265 billion to meet these expectations through social grant transfers, integrated development programmes, the provision of comprehensive social protection and developmental social welfare services.

In this year during which we celebrate the 10th anniversary of the Constitution, it is appropriate that we remind ourselves that government’s social development programmes are a response to the constitutional imperatives to heal the divisions of the past, to restore the dignity of our people, to free their potential to participate in the economy, and to build a just society based on democratic values and fundamental human rights. In line with these principles and the broad goal of social transformation, we have finalised the Older Persons Bill and the Children’s Bill.

Let me take this opportunity to thank Members of Parliament, the Law Commission, various civil society organisations and the faith sector for the assistance they have given and continue to give us in finalising these two key pieces of legislation.

With respect to the Children’s Bill, the only work that is outstanding is the finalisation of parts of section 76. We are well on our way towards strengthening children’s rights and improving their access to quality services. We will complete work on the estimate of the total cost of implementation by the end of April this year. There are already indications that R8,4 million has been set aside in the national Budget, as some of the elements of implementation over the MTEF period may have to be increased.

To complement these efforts and ensure that the sector contributes positively to growth and skills development, we have finalised the social sector’s plan for the Expanded Public Works Programme.

Through the equitable share allocation, provinces will receive R4,2 billion to utilise for early childhood development and for the upscaling of home and community-based care and support for people living with HIV and Aids, particularly children. Some of these children have already been identified in the child protection register which is operational in all the provinces.

Strong and effective community childcare forums are a vital mechanism in childcare and protection, and the department will be supporting the establishment of these forums in many communities. These efforts will be complemented by the policy framework on vulnerable children and orphans.

All this work is being undertaken as part and parcel of the government’s scheme for comprehensive social security and protection. This scheme is an important element of the social sector’s contribution to the Accelerated and Shared Growth Initiative for South Africa. The Deputy Minister, in her presentation, will elaborate on the key pillars of the integration of Gwebindlala and social security programmes, so as to promote targeted economic growth.

I am pleased to inform this House that progress has been made with regard to the implementation of the first pillar of our comprehensive social security framework. In this regard, we now provide direct social assistance transfers to more than 11 million South Africans, including the elderly, people with disabilities and children who are vulnerable.

Three years ago we set a target of reaching 2,2 million children living in poverty through the child support grant. We have exceeded this target, and currently provide assistance to more than 7 million children through the child support grant. Research studies have consistently confirmed that these grants not only reduce the occurrence of hunger and extreme poverty, but that they also facilitate household access to basic services and economic opportunities.

In line with these positive social and economic impacts and projections on the numbers of eligible beneficiaries, R201 billion will be spent over the MTEF period on direct cash transfers and their administration. Government has already announced, effective from 1 April this year, that the care dependency, old age and disability grants will be increased by R40 to R820 a month, the foster care grant by R30 to R590, and the child support grant by R10 to R190.

The first phase of the establishment of the national Social Security Agency is on track for completion by 31 March 2006. As far as yesterday’s Minmec meeting with the MECs for social development of the provinces is concerned, the agency will initially take over social assistance payments in Gauteng, the Western Cape and the Northern Cape, with the process being completed in the other provinces by March 2007. We have already entered into contractual agreements with provinces to ensure the seamless transfer of staff and the uninterrupted provision of services.

Let me take this opportunity to express my appreciation to organised labour and the staff of the department who have worked with us in ironing out staff transfer and migration issues. We are confident that the Social Security Agency will equitably enhance the quality of life of our people, whilst attending to the issues of efficiency, system integrity and economy.

Although we are proud of our achievements with respect to noncontributory social security schemes, we are committed to addressing the challenges faced with respect to contributory social security schemes.

All of government’s work in this area and in the area of retirement reform will be guided by social transformation and equity principles, which are directed at protection against poverty in old age, during disability and upon death of a wage earner; equitable access to retirement provision for those gainfully employed; improved consumer protection for those benefiting from any of the pillars of the social security system; equity between men and women; the guaranteeing and provision of predictable minimal benefits; the democratisation of the management structures of pension schemes; and the realisation of the role of the state in ensuring the fulfilment of the delivery of benefits. I cannot overemphasise the importance government attaches to the issue of the integrity of our social security system. In order to enhance the integrity of our system, we are focusing our efforts on the establishment of key oversight institutions, such as the Social Security Inspectorate, and on the development of effective monitoring, evaluation and impact assessment systems. We have set aside R25,5 million and R19,4 million respectively for these purposes over the MTEF period.

Our successful antifraud campaign, which has saved the state about R400 million over the past year, has laid a solid foundation for the work of the Social Security Agency. The National Prosecuting Authority has already prosecuted more than 500 people out of 12 000 civil servants who we believe are either involved in or defrauding the social security system.

We have also identified a further 35 000 suspect cases, through our antifraud hotline, for further investigation. In this year’s budget we have set aside R47 million for the acceleration of our ground-breaking collaboration with the Special Investigating Unit (SIU).

Lessons learnt from collaboration with the SIU have, in turn, improved our review process of the recipients of disability grants. An additional 150 000 recipients of temporary disability grants have been reviewed, therefore adhering to proper administrative procedures, and these reviews have been conducted with very little disruption of disbursement processes.

In addition, a total saving of about R200 million has been achieved. In order to consolidate the integrity of our social security system and related processes, we are increasing the national budget allocation for system integrity from R24 million in the current financial year to R60 million for the next financial year.

Some of these funds are devoted to strengthening our management information systems. We are committed to drastically reducing the turnaround times for grant applications, to improving the effectiveness of our risk management processes, and to standardising reporting procedures across provinces.

The agreements that have been reached with our partners in the banking sector are most welcome, as we are committed to ensuring that no one has to travel more than five kilometres to receive his or her grant, and we remain committed to ensuring that the dignity is respected of our older persons who receive social assistance.

With respect to the transformation and provision of social welfare services, the year 2006 will be a watershed one. With the establishment of the SA Social Security Agency (Sassa) the national and provincial departments of social development can now focus more on social welfare services, which were not previously given adequate attention and resources.

The integrated service delivery model, launched last year, defines the nature, scope and level of service delivery, and defines the roles that are to be played by all spheres of government and organisations of civil society in social service delivery.

The model also provides a framework for service integration among the components of social development in order to promote sustainable livelihoods in communities. This integration will also be bettered with the implementation of the policy on financial awards to welfare service providers.

The extent to which we are able to provide social welfare services is also fundamentally influenced by the critical shortages in the supply of social workers and other social service professionals. The review of the salaries of social workers has been completed, and the retention strategy for social workers is being finalised. A national capacity-building programme for social service professionals has also been conducted. We are looking forward to working with the SA Council for Social Service Professions and with both the Professional Board for Social Work and the Professional Board for Child and Youth Care on all these matters.

It is our intention during this year to remember also that 2006 is a watershed year for our youth development programmes. Thirty years ago the youth of Soweto and of other townships in our country took to the barricades and confronted the apartheid regime as part of the struggle for a just and democratic dispensation.

Government’s youth development framework for the social sector is informed by the 2005 Status of Youth Report by the Human Sciences Research Council and by the 2005 Macro Social Study conducted by the Presidency. Both these reports highlighted the structural challenges facing our young people in our second decade of democracy.

The objectives of the framework are, firstly, to improve the material and social conditions in which young people grow up, study and play; and, secondly, to strengthen social cohesion and establish a social contract. Over the MTEF period, Budget Vote 18 will devote substantial resources to the developmental needs of young people and the implementation of the programmes specified in the youth development framework.

A key part of the mandate of the department is to create an enabling environment for sustainable social development, in partnership with all sectors of society committed to building a caring society. It is therefore our responsibility to work with our social partners - the business sector, organised labour, the faith sector and academia - in following through on the agreement reached at the Growth and Development Summit to provide people-centred development. This requires that we establish partnerships and build the capacity of nongovernmental organisations (NGO’s) and community-based organisations working in the human and social development arenas.

In this regard, we have considered the findings of the study of the impact of the Nonprofit Organisations Act, and will this year be initiating the process of putting in place an enabling legislative framework that is more conducive to the functioning of these organisations.

Our ultimate goal is the eradication of poverty, as facilitated by strengthened developmental institutions directed by our people. Therefore, we will do all that is necessary and within our power to ensure that this sector receives significant and predictable financing, so as to facilitate its effective development.

We have set aside R14,4 million over the MTEF period for the creation of this enabling legislative and regulatory environment for the NGO sector. These funds will complement the R388 million we have set aside for the National Development Agency over the MTEF period.

In building on our work in the area of social assistance, a key priority in the medium term will be the design and implementation of policies and best practice models for poverty eradication and community development. Over the MTEF period we will, therefore, spend R56 million on the development of sustainable livelihood strategies.

As with all other programmes, we will be establishing partnerships with academic and research institutions that enable us to leverage our social assistance programmes and link them to sustainable livelihood strategies. By June this year we will be finalising a research and capacity-building partnership agreement with the University of KwaZulu-Natal that focuses on these linkages. It is through such partnerships that we will be able to ensure better utilisation of the dedicated funds available from our Sector Education and Training Authority.

These partnerships will be modelled on the Charlotte Maxeke Collaboration in the Economics of Social Protection, that we have established at the University of Pretoria and on the A B Xuma fellowship of social policy, established by the University of Oxford in the United Kingdom.

The objectives in all these partnerships are to stimulate research that informs evidence-based social policy and to provide training and mentorship for young researchers. We are confident that in the medium to long term, these partnerships will capacitate our implementation of the SADC’s Regional Indicative Strategic Development Plan and the African Union Commission’s Strategic Framework. We see South Africa’s election to the chair of the Intergovernmental Council of the Management of Social Transformations Programme at Unesco, as an opportunity to consolidate all our partnerships and link them to the regional networks of Ministers of social development in Southern Africa.

This particular engagement at a multilateral level is complemented by a series of international initiatives. These include our trilateral programme in the India, Brazil and South Africa collaboration, and the consolidation of our partnerships with our regional neighbours, in particular Angola and the Democratic Republic of the Congo.

In the year in which our country celebrates the 10th anniversary of our Constitution and marks the 50th anniversary of the Women’s March, I am honoured to say that Budget Vote 18 is true to the imperatives to heal the divisions of the past, restore the dignity of our people, free their potential to participate in the economy and build a just society based on democratic values and fundamental human freedoms.

In order to provide further programmatic expression on these core values, the Deputy Minister will, in her presentation, pay attention to certain areas I may have overlooked. These will include substance abuse and disaster relief environments. I thank you. [Applause.]

Mrs T J TSHIVHASE: Mulangadzulo, Tshanda tsha Mailausumbwa … [Speaker, Deputy Speaker …]

Deputy President, hon Ministers, hon Deputy Ministers, hon members, ladies and gentlemen on the podium, I will be focusing on the overview and establishment of the SA Social Security Agency (Sassa). The theme for the Portfolio Committee on Social Development’s Budget Vote 18 is: “Today is better than yesterday and tomorrow will be better than today.”

The ANC-led government ensures that all spheres perform optimally with regard to all our socioeconomic programmes directed at the further improvement of the quality of life for all our people - as in the January 8 statement of 2006 - through improved and accelerated service delivery, and, reducing the level of poverty, hence the dream of a better life becoming a reality to many more amongst our people.

During the state of the nation address, His Excellency the President stated that seven million children were now receiving support grants. A total of 10 million of our citizens receive social grants. Real social expenditure per person increased by 60% between 1983 and 2003. Detailed evidence from a study conducted by H Borat and others indicated that there had been a consistent shift in expenditure in favour of the poor.

To improve delivery in this area, we will continue to implement our comprehensive antifraud strategy. Many of those who were stealing social grants have already been brought to book. This work will improve with the launch of the SA Social Security Agency (Sassa).

Meaningful implementation of the budget before this House today is, in fact, being achieved. The ANC has, over the past 12 years, demonstrated both the political commitment and the constitutional obligation to ensure that there is universal access to social security. As the ANC, we can proudly proclaim that our system will effectively and drastically reduce poverty. The macroeconomic impact of our social security system is largely positive.

The department also plays an important role in fighting poverty through developmental interventions such as income–generating projects. In this regard, the department is involved in developing a comprehensive poverty alleviation policy that aims to ensure integrated responses to alleviating poverty. In addition, its programme for the reduction of the impact of HIV and Aids on poor communities, which is linked to the Expanded Public Works Programme, provides skills and income generation.

Consolidated expenditure on social development – that is social assistance, poverty alleviation and social services - for the 2006-07 financial year amounts to just more than R80 billion. And this is expected to increase over the Medium-Term Expenditure Framework (MTEF) period to R96,8 billion. This allocation is the second highest in the social cluster, second only to education. When the social assistance allocation is deducted from the consolidated amount allocated to social development, the allocation to the national department and the provincial equitable share amounts to approximately R23 billion. This represents an increase of approximately 10%.

The Minister of Finance, in his Budget Speech in February this year, indicated that there was an additional social assistance grant programme of R2,7 billion. Income transfers to households, mainly through our social grant assistance programmes, have been increased from R42,9 billion in 2002- 03 to R74,2 billion - an increase of 20% a year.

The 2006 budget provides for continuing growth regarding the number of eligible beneficiaries, and social grants will increase in real terms on 1 April.

Minisita wa Muhasho wa Mveledziso ya Matshilisano, kha tshipitshi tshavho, vho divhadza u gonya ha mindende ya vhaaluwa nga R40, lune wa vho do vha R820 nga nwedzi. Hezwi ndi zwihulwane vhukuma. Zwenezwo zwi kwama na vhaholefhali. Vhane vha tou undiwa, sa vhana, vhone vha do engedzwa nga R10 ya vho vha R190 nga nwedzi.

Mundende hoyu muswa u do thoma nwedzi wonoyu u daho nga dzi 1 Lambamai. Nga hedzi dzi 1 Lambamai, hu do thomiwa tshiimiswa tshiswa tsha u thusa, na u leludza kuholele kwa mindende. Zwenezwo zwi do thusa u tsireledza vhathu kha u sokou fhuriwa. Tshenetsho tshiimiswa tshi do langa magavhelo tsha fhedzisela nga u dzhia vhudifhinduleli nga u holela mindende. Dzikhamphani dze dza vha dzo fara uyo mushumo dzi do tsirusiwa. Aya ndi maambiwa nga Minisita wa Mveledziso ya Matshilisano nga dzi 12 Luhuhi 2006.

Tshiimiswa hetshi tsha Sassa, tshi do holela mundende wo teaho, muthu o fanelaho. Tshi do dovha hafhu tsha sedza zwauri avho vho itaho khumbelo dza u hola, vha tavhanyedzeliwe nahone vha songo lengiswa. Tshi do dovha hafhu tsha sedza na zwa u fhungudzwa ha miduba milapfulapfu ngei mindendeni. (Translation of Tshivenda paragraphs follows.)

[The Minister of Social Development in his speech announced that the old age grant, the disability grant and the care dependency grant will increase by R40 to R820 a month. The child support grant will increase by R10 to R190 a month. This is excellent.

These changes will come into effect on 1 April. On the very same day a new institution, which will simplify and provide assistance to social grant payouts, will be introduced. This will prevent fraud amongst our people. This institution will control and manage grants as well as carry the responsibilities in the social grants payouts process. The companies, which were rendering such services, will be relieved of their duties. This was uttered by the Minister of Social Development on 12 February 2006.

This institution called Sassa will ensure that the grant is paid to the rightful beneficiaries. It will also ensure that people who apply for a social grant get into the system as soon as possible. It will also ensure that long queues during grant payouts are reduced.]

Budget Vote 18 comprises the following programmes, focusing on administration; comprehensive social protection; social security transfers and administration; social welfare transfers; development and research; strategy, regulatory and oversight management; fighting poverty and building social cohesion. Respective speakers will deal with the above- mentioned programmes.

In the 2006-07 and 2009-10 strategic plan, our hon Minister, Zola Skweyiya, in his foreword, mentioned that we have reinstalled hope for millions of families and over 7 million children. These families and children have a yearning for - and shall receive over this MTEF period - comprehensive, integrated, sustainable and quality services from our department. Such services will strive to address the root causes of vulnerability and poverty – which were caused by my left wing here – whilst creating an enabling environment, sustainable development and the building of a caring society. The successful implementation of such policies and programmes will, no doubt, also positively contribute to our aim of building a caring society for all, including those that may be vulnerable and in need of care.

Ndi fhedza nga la uri kha Vho Minista: “A vha ri tshileli, nahone ndala yo onesa kha vhaaluwa vhashu, vha holefhali, vhana vha si na vhaundi na zwisiwana, zwo vhangwaho nga hei khakhathi ire nga hafha thungo. Afurika Tshipembe li kha khalanwaha ya fulufhelo. ANC i tikedza Mugaganyagwama uyu. Ndi a livhuwa Vho Minisita kha mushumo we vha u ita kha lushaka lwa Afurika Tshipembe. [U vhanda zwanda.] (Translation of Tshivenda paragraph follows.)

[In conclusion I would like to dedicate my gratitude to the Minister. Hunger – as caused by the left wing - is no more amongst our aged, the disabled, abandoned children and orphans. South Africa is in the age of hope. The ANC supports this Budget Vote. I thank the Minister for the wonderful effort he made for South Africans. [Applause.]]

Mr M WATERS: Deputy Speaker, Deputy President, hon Minister, hon members, while there has been some progress with regard to the investigation of public servants receiving social grants fraudulently, the conviction of these individuals is exceedingly slow. What is more, those who have been found guilty are not, in some cases, paying back the full amount they stole from the taxpayers.

The DA believes that the minimum punishment these common criminals should receive, so that they could pay back what they stole, is that an additional fine should be levied, or even a prison sentence in extreme cases. Their employment records must reflect that they have been found guilty of stealing from the state, and on a case-by-case basis the worst offenders should be dismissed. These individuals must bear full responsibility for their crimes.

If we fail to make the punishment greater than the crime, then all we are doing is encouraging more fraud, as not only do you keep your job if you are caught, you don’t even have to repay what you stole.

I am alarmed at the lack of proper oversight of the budget by the Social Development Committee. When the department appeared before the committee two weeks ago, they presented their strategic plan for next year. However, they failed to present their budget. It was only after I raised this point that global figures were presented to the committee. No detailed line- function budgets were presented. How on earth can a strategic plan be presented without a budget to go with it?

Furthermore, when I asked what the budget for the Central Drug Authority (CDA) was, not one department official could tell me. I was told to refer to Budget Vote No 18 from the National Treasury, but when I inspected this there was no indication of what the budget for the CDA actually was. I sincerely hope that other members of the committee were in the House last week when the Minister of Finance stated that we, as MP’s have all the necessary tools to conduct thorough oversight, and it is our own failing if we allow departments to ride roughshod over us.

Department officials also told the committee recently that the poorest of the poor, the most vulnerable people and those who are marginalised, are the department’s top priority. The DA says “Amen” to that. But we are not convinced that the government is doing enough in this regard.

For example, we were also told that the department provides a comprehensive social security system, as proposed by the Taylor commission. However, if you are an able-bodied male between the ages of 14 and 65, or female between the ages of 14 and 60, there is very little provided by government with regard to social grants.

The Taylor Commission clearly supported the introduction of the basic income grant for the poorest of the poor, and so does the DA. The introduction of such a grant cannot be in isolation from other measures. It will only help to alleviate poverty and not eradicate it. The only way that we, as a nation, will beat the curse of poverty is through job creation. The DA, in its alternative budget, listed several steps it would take that would kick-start economic growth and therefore job creation. However, the reality of millions of unemployed adults will be with us for many years to come. With up to eight million adults who cannot support themselves or their families, South Africans cannot sit back and allow our fellow citizens to starve.

Another point of grave concern for the DA is the chronic lack of social workers, which, according to the department, is a problem that is virtually getting worse by the day. Two important Bills were passed by Parliament recently: The Children’s Bill and the Older Persons Bill. I was surprised that the Minister mentioned that there are certain aspects of section 76 of the Children’s Bill that still haven’t been approved. We certainly hope, from the DA’s side, that this has nothing to do with disabled children being allowed to gain access to courts.

Both these Bills depend heavily on social workers, and both will be stillborn without the necessary number of social workers. In a reply to a parliamentary question from me in 2004, you stated, Minister, that 2 326 social workers were employed, whilst there were 4 731 posts available. This is a shortfall of 51% in terms of the requirements set by the department.

However, a representative of the department stated in the committee meeting that at the very minimum there should be at least one social worker for every 5 000 people in the country. This means that we should actually have 8 964 posts, which would make a shortfall of 74%. To make matters worse, the international norm is one social worker for 1 500 people, which translates into South Africa needing 29 879 positions. This would give us a shortfall of 92%.

This chronic shortfall of social workers is getting worse and not better, as the committee was informed two weeks ago, so the figures I have just read out are on the optimistic side. This disgracefully heavy workload placed on social workers by these shortages is compounded by the impact of HIV/Aids, the ever-increasing child abuse statistics, and by the additional responsibilities placed on them by the two Bills I have just mentioned.

It is clear that urgent action needs to be taken, and we are pleased to hear that the Minister mentioned it in his speech, because at the end of the day, hon Minister, the buck stops with you, as you are responsible for this department. We are very pleased that you are taking steps in this regard.

Another grave concern for the DA is that of the child protection register. Here, I do differ with you. I do not believe that it is being properly implemented. The Children’s Bill introduces Part B of the register for the first time, in which the names of perpetrators and people found not suitable to work with children must appear. However, Part A of the register has been in existence for years, and is quite frankly not worth the paper it is written on.

The aim of Part A of the register is to ensure that all children suffering from abuse, neglect and nutritional diseases are registered, so that they can be monitored. The main objectives of the register are to ensure that if an abused child is moved from province to province, the authorities can track that child to prevent the same abuse from recurring; to ensure that children on the register receive proper services; and to create a picture of child protection needs across the country in order to identify gaps.

However, a dismal 13 383 children’s names appear on the list. The Eastern Cape list doesn’t have one single name on it. This is according to a parliamentary reply from you, hon Minister. According to this register, in the poorest province in the country, there is not one single child that is suffering from a nutritional disease. I am sure that the rest of this House will join me in being highly sceptical that this is the case.

Other provinces are not faring much better. KwaZulu-Natal has 36 names on its list, Limpopo 29, and North West 18. What could and should be a powerful tool in combating child abuse and neglect and ensuring that children receive the necessary welfare services, is, quite frankly, a farce. Last year alone, 85 808 crimes against children were reported to the police. The names of all these children should have appeared on the child protection list, but they do not.

Another issue is that last year the committee was outraged at the fact that the (CDA) only had a budget of R400 000. This year we see that the budget has increased to R600 000 - and it wasn’t easy getting this figure, hon Minister; I had to do a lot of searching for it – which is still a far cry from what is really needed.

To give this House an indication of how small R600 000 really is: Last year the Department of Social Development spent R242 000 on a budget party - and we are going to have one after this debate as well. That is how much the Department of Social Development has spent on a budget party last year. That is 40% of the (CDA’s) entire annual budget. I wonder what we are going to be spending this year.

However, underbudgeting is not the only problem. Other departments treat the CDA with contempt; several of which failed to submit their annual drug plans, although they are compelled to do so by law. Given the dramatic increase in young South Africans using and becoming addicted to drugs such as tik and heroine, one would have thought that the Department of Education would have been the first to submit its plan to the CDA, yet it still has not done so.

I am also appalled at the lack of basic information available about children in the criminal justice system. Last year I asked two parliamentary questions. The first question pertained to court cases involving child victims that was withdrawn, due to no assessment reports by social workers and no DNA. The second question pertained to whether any of the child offenders, who were awarded early parole by the President, actually received any rehabilitation, and whether social workers compiled the reports supporting their early releases.

In both cases the questions could not be answered, even though I posed them to several Ministers, including you, Mr Minister, the Minister of Correctional Services, the Minister of Safety and Security, and the Minister of Justice and Constitutional Development. Not one Minister could answer those questions.

What this highlights is that there is no central database or any system in place for monitoring cases involving children, and tracking them through the criminal justice system and beyond, to ensure that children receive the necessary counselling, and that perpetrators are not released early when they have not received rehabilitation and are still a threat to children.

I have outlined several issues, which are of grave concern, not only to the DA, but to the Minister as well, I am sure. The DA is more than willing to assist, when asked, in any way to improve the situation. I am pleased that the Minister asked the hon Weber to help with regard to social workers last week. Thank you very much. [Time expired.] [Applause.] Mrs X C MAKASI: Madam Deputy Speaker, Minister, Deputy Ministers, hon Members of Parliament …

neendwendwe zethu, ndiyanibulisa namhlanje. Sekela-Mongameli, intetho yam namhlanje iza kujolisa kumba we-social security transfer and administration. Namhlanje kungcono kunayizolo; ngomso kuza kuba ngcono kunanamhlanje. UMgaqo-siseko walapha eMzantsi Afrika ugxininisa ekubeni wonke umntu unelungelo lokufumana uncedo ukuba ngaba akakwazi ukuzinceda, kubandakanywa abantu abaxhomekeke kuye kunye neembedlenge. UMgaqo-siseko uqhuba uthi, wonke umntu unelungelo lokuba nendawo yokuhlala, lokufumana imfundo, ukutya, unyango kunye namanzi acocekileyo, nanjengoko sasitshilo kuMqulu weNkululeko ngowe-1955. (Translation of isiXhosa paragraph follows.)

[… and hon guests, today I would like to greet you. Hon Deputy President, my speech today is going to focus mainly on security transfer and administration. Today is better than yesterday; tomorrow will be better than today. It is further emphasised in the Constitution that each and every person has a right to receive help if the need arises, including those who are dependent on him or her, as well as the disabled. Further emphasised in the Constitution is that everybody has a right to accommodation, education, food, health treatment and clean water, as it was also declared in the Freedom Charter in 1955.]

The social security transfer will ensure the effective and efficient administration management of the payment of social assistance. It provides the funding to administer and make payments in terms of the Social Assistance Act. This transfer will also focus on improving the integrity of social grant administration and facilitate Sassa, the SA Social Security Agency, in becoming fully operational.

In line with the President’s directive, it focuses on improving the efficiency and effectiveness of social security transfers in grant spending and reduces the risk of abuse of social grants. These measures include the continued implementation of the comprehensive antifraud detection and prevention plan, the application of a means test, as well as a review of the eligibility of all beneficiaries as a result of changes in their circumstances.

The social assistance components of provincial departments of social development are implementing a separation of provincial welfare services, and a staff migration strategy has been developed. Discussions are under way with organised labour regarding the transfer of staff that is to be undertaken while ensuring that service delivery continues.

There are three business units that will account to Sassa’s CEO. The CEO will account to the director-general, whilst the director-general will account to the Minister of Social Development. This will ensure that everything is in order. There were some achievements in 2005. I’d like to mention a few. The grant now covers more than 11 million beneficiaries. The age-extension target of 2,3 million children was met and exceeded. Seven types of grants were paid out at over 11 780 pension paypoints.

Memoranda of understanding were entered into with the provinces to facilitate grant disbursements. Over 2 million people used financial sector institutions, such as banks and post offices, to access their grants. An amount of R3,2 billion was transferred to provinces as conditional grants and was monitored periodically.

An agency blueprint and a high level of capacity was built, and the blueprint development resulted in disasters being assessed within 48 hours, with 70% of applications processed within three months.

Data interrogation was done in all provinces, which tracked fraudsters, including some 41 000 public servants. A hotline was launched, which saw some 15 000 cases being reported.

The indemnity offered by the Minister with respect to 86 000 cases saved the state over R4 million. A review of disability grants progressed, with 18 000 completed. A total of 515 cases of social grant fraud were taken to court and there were 128 convictions.

Sizimisele ukuqhubela phambili nala matyala orhwaphilizo. Kangangokuba kunyaka wama-2007, ngoMatshi, siya kube sesichophele isiqingatha sawo, ukuze ngowama-2008 sibe siyawagqibezela. [We are determined to continuously deal with these cases against corruption. As a result, by March 2007 we must have dealt with 50% of these cases, and by 2008 we should be finalising them.]

I now come to the challenges. These include ensuring the transfer of functions and entries appropriate for the transfer of assets and liabilities, measures to evaluate the performance of the agency, effective management, the transfer of staff, institutional reform and disaster relief.

Our priorities for the future include improving coverage of grants, ensuring that all beneficiaries get them on time and under humane conditions; improving application verification and approval processes; supporting the Minister in overseeing the agency and building middle management and implementation capacity; deepening the antifraud campaign and concluding all outstanding cases; and making sure that the draft Bill on disaster relief is finalised.

Indeed today is better than yesterday. Tomorrow will be better than today.

Singulo rhulumente kaKhongolozi sizimisele ukwakha impilo engcono kubantu bonke balapha eMzantsi Afrika. Ndiyabulela. [The ANC-led government is determined to build a better life for all the people of South Africa.] [Applause.] Mrs I MARS: Chairperson, hon Deputy President, hon Minister, Deputy Minister and colleagues, a huge number of marginalised citizens continue to have to rely on social grants as a means of survival. There are nearly 11 million of them and that amounts to almost a quarter of our population. I shudder to imagine what their lives would be like without the assistance of our grant system.

We believe and, I think, everybody agrees with us that job creation should be foremost on our nation’s agenda, to at least prioritise young people and enable them to take charge of their lives. We support, as I think we all do, the increases in grants, but we realise that we still have to continue working with other departments, such as Home Affairs, to ensure that every eligible person is correctly documented in order to access the grants to which he or she is entitled.

We wish to applaud the action and initiatives taken by the hon Minister in rooting out fraudulent access to grants. In fact, it is our duty as parliamentarians to support all efforts to conserve the resources made available for those who are genuinely in need. One wonders how it is possible for public servants to access means-tested grants, and I believe that those that have not availed themselves of the amnesty should be named and blamed.

The Minister financially empowered the Special Investigating Unit (SIU) to rid the system of corruption, and their efforts have been extremely successful. We are, however, shocked to note that the initial fraud estimate of 2,5% of the R23 billion social security budget allegedly escalated to 6%. If this is correct, then I think we are in trouble.

Thanks to the success of the SIU, prosecution of corrupt officials has commenced and monies are being recovered. It is estimated that over a 10- year period, R4,5 billion could be saved and the IFP congratulates the SIU.

The IFP, as a federal party, is on record as having opposed the establishment of the SA Social Security Agency (Sassa), because it removed delegated powers from our provinces. However, we fully accept that the (Sassa) is a fait accompli and is listed now as a schedule 36 public entity, and we will certainly support it.

The presentation made by Sassa was very impressive, and we await with interest the implementation of the programme. We shall follow this process, and express the hope that the transfer of staff from provincial departments to the agency goes smoothly and without further cost implications, and that no beneficiaries will be adversely affected.

An amount of R135 million was allocated to the establishment of Sassa for 2006-07, with an increase to R167 million for 2008-09. One questions whether further uptakes of grants will not require greater allocations than anticipated. In a few days, three provinces, namely Gauteng, the Northern Cape and the Western Cape, will commence with the new system. We wish them well.

Social development has come a long way since we started out in 1994 as welfare. We are now serving R10,8 million people in terms of grants alone. We doubt that this number is likely to decrease, unless we can accelerate income generation and labour-intensive projects as realistic poverty alleviation interventions. Economic empowerment and emancipation has to be our ultimate goal.

The Deputy President said in a recent address in Durban that the cycle of dependency needs to be broken. We all agree with her. She asked faith-based organisations, like Diakonia, to help break the cycle. We agree that a nongovernmental organisation can be of great assistance, but unless all of us pull together to free our marginalised people from the yoke of economic disempowerment we will not succeed in breaking the cycle of dependency. Financial assistance is required more and more to enable the nongovernmental organisations to be even more effective.

On the issue of disability grants for victims of HIV/Aids, we would like to suggest an ongoing dialogue with the Department of Health and other shareholders to ensure acceptable standards, with particular emphasis on the plight of rural people with HIV/Aids who lack easy access to facilities for assessment and treatment. HIV-orphans and vulnerable children remain a concern. The first question we wish to raise is whether or not the policy framework with regard to them has been completed. We express concern to hear that only 40 000 children are being supported. Figures regarding HIV orphans and child-headed families differ a great deal and are speculative. Has there ever been a reliable audit of the true number of them?

Foster-care placement has been effected on behalf of nearly 3 000 children, but there are the remaining 37 000. How have they been taken care of? Adequate funding, surely, can only be allocated if we deal with realistic figures? With the removal of grant administration from provinces, we would like the social welfare sector strengthened.

Recently completed legislation on older people and children will make extra demands on services. Isn’t now the time, given the shortage of professionals in this sector, for the state or provinces to research medium to long-term needs and to offer conditional bursaries, repayable by work contracts for a number of years and an undertaking to work in rural areas? An incentive like this may well be used to guarantee services when needed most. The IFP supports Budget Vote 18. I thank you. [Applause.]

Ms N C NKABINDE: Chairperson and hon members, the Department of Social Development has a broad mandate and, understandably, the immense need out there places strain on its budget.

The department has the lead responsibility for the realisation of a number of key human rights issues. In addition, it has various other responsibilities. For instance, we agree that legislative issues on substance abuse and the social service professions require attention. However, by far the most pressing need that the department is responsible for is the alleviation of poverty. It is apt that we consider the massive scale of this challenge.

The latest research indicates that 66% of children are living in income poverty, that is in households that have less than R1 200 per month to spend on the needs of all its members – two thirds of all the children in this country.

In light of this massive poverty, the UDM has repeatedly called for the age limit of the child support grant to be extended. Whilst we welcome the fact that it has been extended to the age of 14 years, we remain convinced that it should be extended to the age of 18 years.

Currently, the government is essentially taking away support just at that stage in the poverty-stricken child’s development when he or she is entering high school and is on the verge of building a better future. The UDM continues to hold the view that the current social grants are not adequate. We appreciate that the social grants already constitute about 3% of the GDP.

Whilst we celebrate our so-called “age of hope”, we should not hesitate to share the fruits of our large economic harvest with those less fortunate than ourselves. The economy is growing at a rate far better than even the biggest optimist expected. The rich are getting richer, and the employed have received repeated and generous tax cuts over a number of years. The UDM supports the Budget Vote. [Time expired.] [Applause.]

Mr K W MORWAMOCHE: Agb Voorsitter, agb Adjunkpresident, agb Minister en Adjunkminister, Lede van die Parlement … [Hon Chairperson, hon Deputy President, hon Minister and Deputy Minister, Members of Parliament …]

The Department of Social Development relies on the Department of Home Affairs for the issuing of faultless birth certificates, ID documents and death certificates, as well as on doctors and social workers from the Department of Health.

I want to remind the DA that the Department of Social Development does not control social workers. The Department of Social Development relies on the Department of Health to supply it with social workers to perform speedy service delivery, in order to make a better life for all.

Modulasetulo, ntumelele ke laetše gore, re le ANC, re thekga kabo ya kgoro ye ka baka la leano-pušo la ANC la go phala a diphathi ka moka tša bomagogorwana ka Ntlong ye. Leano la dipeakanyo tša kgoro ye le sepelelana le moeno wa Freedom Charter wa gore: The People Shall Govern! Ke therešo batho ba a buša ka gore ba bona dipoelo tša mmušo wa bona o moswa.

Kgoro ye e hlagiša dikabelo tša mašeleng go thuša setšhaba, e le taetšo ya gore e dirile konteraka le setšhaba gore e tla se hlankela. Go na le kabelo ya mphiwafela wa batšofe - Old Age Grant – wo o swanetšego go amogelwa ke monna ge a le nywaga ye 65 le mosadi ge a le nywaga ye 60. Gape go na le mphiwafela wa digole goba digwahla goba dikoka - disability grant – wo o swanetšego go amogelwa ke mosadi ge a le nywaga ye 17 go iša go ye 59 le monna ge a le nywaga ye 18 go iša go ye 64. Monna o swanetše go amogela mphiwafela wa bogwahla ge mogolo wa gagwe goba seo a nago le sona se sa rone dinyakwa tša Means Test.

Ke rata gore setšhaba se kwešiše gore mphiwafela wo ga se wa motho yo mongwe le yo mongwe goba monna-o-wetše goba mosadi-o-wetše, eupša ke wa bao ba hlakago. Mmušo o hlagiša dikabelo go bafepi ba ditšhuana - care depenedant’s grant – tšeo di swanetšego go amogelwa ke motho ge a na le ngwaga go iša go ye 18. Motho o swanetše go ba le lengwalo la taelo ya kgorotsheko - Court Order - go laetša gore kabelo ya bofepi e swanetše go ba diatleng tša gagwe. Seo se dirwa ka baka la gore go na le ba bangwe bao ba tšeyago ditšhelete tšeo ba di golelago ba bangwe gomme ba ye go nyala ka tšona mola ba bangwe ba reka dipoane ka tšona. Kgoro ye ga e thušetše gore go sepelwe ka tsela yeo.

Go na le ditlhohlo tšeo di lebanego le kgoro ye. Bjaloka ge ke laeditše go tloga mathomong, kgoro ye e holofetše Kgoro ya tša Selegae gore e fe batho dipasa le disetifikeiti tša nnete. Ge bašomedi ba Kgoro ya tša Selegae ba nea batho dipasa tša bofora, kgoro ye ke yona e šikarago bothata bja merwalo yeo e sego ya yona.

Kgorong ya tša Maphelo le gona ge dingaka di nea batho mangwalo gore ba ye go ikgopelela dikabelo tša mphiwafela wa bokoka ka moo go sa lebanago, bothata bo rwalwa ke kgoro ye.

Kgoro ya tša Mešomo e swanetše go hlohleletša batho gore ba be le retirement fund le pension fund gore e re mohlang motho a gobetše mošomong a se ke a ba morwalo wa Kgoro ya tša Leago, eupša e be gore ka boyena seo a bego a se šomela a kgone go se hwetša.

Kgoro ya tša Toka le yona e rweša kgoro ye morwalo ka go se šale morago bao ba ganago go fepa bana bao ba ba belegego, gomme ba fetše ba wela ka diatleng tša kgoro ye ka baka la gore kgorong ye ga go nyakege moemedi ge motho a ingwadišetša go gola mphiwafela. Kgoro ya tša Dinamelwa le yona e rweša kgoro ye morwalo ka ge dinamelwa tše dingwe di se na inšorense. Ge batho ba gobela mo ditseleng, Kgoro ya tša Leago e rwala morwalo ka ge e le yona e swanetšego go bona gore bahlaki bao ba a hlokomelwa.

Bjaloka ge ke laeditše, go na le mabaka a mantši ao a dirago gore ANC e thekge kgoro ye. Ke šetše ke laeditše gore bagolwane ba diphathi tša bomabinagosolwa ga ba kwešiše selo ge ba botšwa gore motho o a hlaka. Le ge ba fela ba bolela mo pele ga rena, ba re ba bolela legatong la bahlaki, ga re tsebe gore gabotse ba ra eng ka gore ge re bolela ka Means Test ga go le yo tee wa bona yo a kago o phasa. Sa bona ka mo Ntlong e no ba fela go šireletša mahumo a bona.

Go na le maano ao kgoro ye e a logilego gore go be le mphiwafela wa bagale ba marumo - war veterans grant – e lego bao ba lwetšego tokologo; e sego bao ba bego ba lwela gore apartheid e buše go ya go ile; gape e sego bao ba bego ba lwela gore mebušwana ya dinagamagae e tšwele pele. Kabelo ye e diretšwe bao ba bego ba lwela tokologo yeo bjale ka moka re iphsinago ka dienywa tša yona.

Gape Kgoro ya tša Leago e rwele bothata ka ge kua diprofenseng ditšhaba tša rena, segolothata tšeo di bapilego le dinaga tsa go swana boZimbabwe le Mozambique, moo batho ba rego ge ba e kwa bohlaki, ka ge dinageng tšeo tša bona go se ditšhelete tše bjaloka mphiwafela wa tša leago, ba fetšago ba seletše ka mo nageng ya rena gomme e re ka ge naga ye ya rena e na le botho, e ba amogele, eupša ba fetše e le morwalo kgorong ye. Kgoro ye e tseba e na le dipalopalo tša bao ba lebanwego ke go thušwa, eupša ge go iwa ditirelong, ditirelo tša ntshe di feta kabo yeo kgoro e e filego diprofense tša rena gore di tšwetše mošomo wo pele.

Ke dira boipiletšo go makgotla-kganetšo a bomagogorwane ka Ntlong ye gore re thekgeng mmušo wa ANC gore o buše go ya go ile. (Translation of Sepedi paragraphs follows.)

[Chairperson, allow me to point out that as the ANC, we support the department’s budget allocation because of the organisations’ strategic plan, more than those of minority parties present in this House. The plan of action coincides with the clause enshrined in the Freedom Charter that says: ‘The people shall govern’. It is true that the people govern because they can see the benefits of the new government.

This department is delivering their budget allocation to assist the people, as a sign of the contract it has with the people to serve them. There is the old age grant, which is due to a man who is 65 years of age and a woman who is 60 years of age. There is also the disability grant, which is due to women between the ages of 17 and 59 years and men between the ages of 18 and 64 years. A man must only receive a pension when his salary or his assets correspond with the needs for the means test.

I would appreciate it if people understood that this grant is not meant for every aged man and aged woman, but only for those who are in need. The government offers a care dependant grant, which is due to persons between the ages of one and 18 years. One needs a court order to prove that the child is in his or her care. This measure is in place, because some people take the money and use it to get married or to buy cattle for themselves. This department does not approve of that.

This department is still facing challenges. As I said in the beginning, this department is hoping that the Department of Home Affairs will provide people with appropriate IDs and certificates. If the Department of Home Affairs’ employees give people inappropriate IDs, this department will suffer the consequences. When the doctors from the Department of Health issue letters to people who do not qualify for grants, this department will suffer the consequences.

The Department of Labour must encourage people to have retirement and pension funds so that the Department of Social Development does not carry the burden when they incur injuries while on duty.

The Department of Justice also creates problems for this department by failing to do follow-ups on those people who are not willing to pay their children’s maintenance. Those children end up being this department’s responsibility, because this department does not require an attorney to access the grants.

The Department of Transport also creates problems for this department due to uninsured vehicles. When people are involved in accidents on the road, the Department of Social Development suffers the consequences because they have to make sure that those people get assistance.

As I pointed out, there are a lot of reasons for the ANC to support this department. I have already pointed out that those leaders of the minority parties that only benefit from the ANC’s efforts do not understand anything when we talk about the needy people, even though they claim to be speaking on their behalf. We do not know what they are talking about because none of them would pass the means test. Theirs is only to protect their own wealth.

This department has arranged for the war veterans to receive grants - for those people who fought for freedom and not those who fought hard to retain apartheid, nor those who fought hard to retain the homelands. This grant is meant only for those who fought for the freedom that we are all benefiting from.

Again, the Department of Social Development is facing another challenge, especially in the provinces that are closer to Mozambique and Zimbabwe. The people from those countries escape the hunger in their countries as they do not have grants in their countries and end up in our country, making it the department’s responsibility to take care of them. As this is a warm country, we welcome them, but they end up being the department’s burden. This department has a huge number of needy people, but the services exceed the department’s budget that has been allocated to our provinces to fast- track services.

I am appealing to the minority opposition parties in this House to support the ANC government to govern forever.]

Agbare Minister, mag die pad wat voorlê altyd skoon wees. Baie dankie, Voorsitter. [Applous.] [Hon Minister, may the road ahead always be free of obstacles. Thank you very much, Chairperson. [Applause.]]

Ms F BATYI: Chairperson, the aim of the Department of Social Development is to ensure the provision of a comprehensive, integrated, sustainable and quality social development service against vulnerability and poverty, and to create an enabling environment for sustainable development in partnership with those committed to building a caring society. Hon members, the budget for 2006-07 must do justice to this aim.

The ID wants to commend the department on its efforts to provide social grants for all the needy in our country, and we are looking forward to even more positive results through the work of the SA Social Security Agency with regard to a reduction in corruption and to the efficient paying out of grants.

Services to children and older persons are a priority for the ID. Although grants have gradually increased over the years, there are still thousands of children that fall outside of the social security net. In addition, the ID is appalled that only about 13 300 abused children have been placed on the child protection register in the past 32 years. More must be done about those children who are HIV-positive as only 4 000 of the 50 000 are receiving ARV medication.

The ID also encourages the speedy completion of both the Children’s Bill and the Older Persons Bill in order for real delivery to commence. The costing of each Bill must be done in such a way that those whose lives the Bill aims to improve, must be kept in mind at all times.

The ID places great value on the upliftment of the most vulnerable and needy in our country. This department has a very important mandate to put real delivery where the President’s mouth is. A recent study by the Bureau of Economics has proven that government grants have made a substantial difference towards ensuring that those who are poor are better off. But much more work needs to be done. The ID supports this budget. I thank you. [Applause.]

Mrs C DUDLEY: Chair, hon Minister, the ACDP acknowledges the much-needed increase in critical grants. However, the failure to extend the child support grant to children over the age of 14 years is unfortunate. Children over this age living in destitution are particularly vulnerable to sexual exploitation and exploitation in other forms, such as child labour, as there is no other income available to them.

Extending the child support grant to this age group would not only protect these children from abuse, exploitation and interrupted schooling, but possibly impact positively on early pregnancies in girls aged 14 to 17 years, who allegedly fall pregnant in order to access the child support grant.

Concerns have been expressed that access to disability grants is problematic for persons living with HIV/Aids. As grants are only available when a person reaches a certain stage of the syndrome, it is often too late for the grant to bring relief. It has also been said that this actually prevents people from accessing antiretrovirals, as they fear losing their grant or not being eligible for the grant.

The process adopted by the department for social provision for HIV/Aids orphans and vulnerable children, namely that all have to go through a foster care application and grant process, has brought the entire child protection system to a halt. As a result one service provider alone has 100 000 outstanding foster care applications. This unnecessary waste of resources is counterproductive and cripples services. The costing of the Children’s Bill is well under way, but is likely to reveal that the budget to implement it is seriously lacking.

Finally, the question of whether or not the department has adequate resources to carry out its research and planning function is not easily answered in the budget, and this is a concern to many. Research and planning in general is far from adequate and sets the department up for unnecessary failure. The continued nonexistence of any kind of needs analysis is a glaring omission.

The national strategy for the prevention and management of child abuse, neglect and exploitation, for example, has still not been completed, but has been in the making for about 10 years. The ACDP calls on the department to ensure that this vitally important research is made an urgent priority. The ACDP will nevertheless support this Budget Vote. Thank you. [Applause.]

The DEPUTY MINISTER OF SOCIAL DEVELOPMENT: Chairperson, hon Deputy President, hon Minister, hon members, MECs for social development, distinguished guests, members of the community present here today, ladies and gentlemen, Budget Vote 18, as highlighted by the Minister, outlines our intention to give effect to government’s programme of action and to contribute positively to the age of hope, as mentioned in the President’s state of the nation address.

This year, as we celebrate the 30th anniversary of battles fought by our youth for social and economic inclusion and the 50th anniversary of the Women’s March, we acknowledge the successes of this department in ensuring equitable access to comprehensive social security services, thereby instilling hope for 11 million of the poorest of the poor, the majority of whom are women and other vulnerable groups. The establishment of Sassa, the SA Social Security Agency, has refocused attention on the remaining services in the developmental social service basket.

The Minister of Finance stated in his Budget Speech that a core priority is to strengthen social welfare services. In this regard, the launching of the integrated service delivery model and the passing of key legislation, such as the Children’s Bill and the Older Persons Bill, have laid the foundation for the accelerated delivery of quality social services to the poorest and most vulnerable people.

Hon Mike Waters … I don’t even see him here. [Interjections.] Oh, hello. I’m actually astonished by your breathtaking lack of understanding of the difference between a section 75 Bill and a section 76 Bill. The Minister referred to a section 76 Bill, which is a Bill that still has to be passed through the NCOP. A section 75 Bill - all of it - has been passed, you will be happy to know.

Getting back to my speech, the implementation of the integrated service delivery model, which was launched in 2005, provides the framework for delivering developmental services, whilst defining the roles and responsibilities of all tiers of government, including civil society. This model is crucial in formalising relationships of the department with community-based organisations, faith-based organisations and NGOs as implementing partners at community level.

In order to give effect to government’s priorities in this age of hope, this department has a strategic role to play in developing and strengthening relationships with its partners to alleviate poverty and deliver improved quality services to the poorest of the poor. We acknowledge and thank our many partners, in particular the nongovernmental organisations, the community-based organisations and the faith-based organisations, that form a crucial link in the chain of service delivery as implementing agents.

The service delivery model highlights the role of government as well as that of organs of civil society, including private organisations, community- based organisations, faith-based organisations, parastatals, etc. It is critical to mention that the model calls for a radical transformation of the way things are currently done.

This shift in focus is reflected in the increased allocation to integrated developmental social welfare services. I would like to point out that although there is an increase in the allocation to developmental social services, social security still has 99% of the department’s total budget with only 1% for the remainder of services and administration. Of this 1%, which is almost half a billion rand, 22% of this is allocated to developmental social welfare services. This will be applied to strengthen and expand capacity for the development of social development policies, strategies and programmes, as well as norms and standards.

The social crime prevention allocation is increased by 32,2% in the current year. To reduce the number of children in prison and awaiting trial, the current legislation and regulations will be reviewed, a departmental social crime prevention strategy will be developed and approved, appropriate programmes and guidelines for children awaiting trial will be developed, three secure care centres will be established and the minimum standards for diversion programmes will be launched, and 600 probation officers will be trained.

In terms of childcare and protection services, we are proud to report that the Children’s Bill section 75 has been passed by Parliament in its entirety. The regulations for the Children’s Bill will be developed during this financial year. The other key priorities include the computerised child protection register and the implementation and the monitoring of the policy on the prevention of child abuse, neglect and exploitation. Training and early implementation of the national integrated early childhood development plan will be facilitated.

With regard to substance abuse, the renewal of the national drug master plan is complete and will go to Cabinet for approval. The new plan proposes an array of drug control, prevention and treatment initiatives, which will inform new legislation and programmes.

The first term of the first Board of the Central Drug Authority came to an end last year, and I trust you will join me in thanking the outgoing board for their achievements in the last five years and particularly in 2004-05. The new members of the Board for the Central Drug Authority have been appointed, and I am hopeful the new board will keep the momentum and take up the challenge of achieving a drug-free society with the same vigour.

Current legislation governing services on the prevention and treatment of substance abuse and rehabilitation is outdated and will be reviewed during this financial year. The prevention and treatment of substance abuse Bill will provide for the transformation of services in the field of substance abuse, for community-based interventions, for the development of minimum norms and standards for different levels of service delivery for substance abuse, and for ensuring the registration and monitoring of facilities. The Bill will be introduced to Parliament by the end of June 2006.

A model for community-based services will be developed, including best practice models for children and the youth. Our department will also be hosting an international summit on substance abuse to share best practices at national, regional and international levels in managing the problems of substance abuse.

With regard to victim empowerment, women and gender, in line with this year’s commemoration of the 50th anniversary of the Women’s March, our department will intensify efforts to improve services to women through the mainstreaming of gender in all programmes of the department.

In continuing the work on the prevention of victimisation and on services to women and children, two shelters will be established and the victim empowerment policy will be launched. Monitoring and evaluation of the implementation of the victim empowerment policy will continue. The strategy for the involvement of men and boys in the prevention of violence against women will be finalised.

With regard to orphans and vulnerable children, through the implementation of the department’s Expanded Public Works Programme services for and care of orphans and other vulnerable children will be improved, 5 000 home-based caregivers will be trained and a database for orphans and vulnerable children will be established in each province in this financial year. This will assist in ensuring well-functioning structures to deliver services at all levels. The policy framework for this sector will be finalised and a national action plan for orphans and vulnerable children will be developed. The number of childcare forums will be increased by 800 over the next two years.

With regard to the National Youth Service, as part of the 30th anniversary youth celebrations, youth development will receive prioritisation in this financial year. In addition to the National Youth Service Programme mentioned by the Minister, the integrated youth strategy will be launched in June during Youth Month. Guidelines for the training of provincial staff and service providers will be completed by December 2006. A skills programme for protecting vulnerable youth is being developed and will focus on the homeless and youth living on the streets.

With regard to social service professionals, the delivery of developmental social services necessitates the creation of an enabling environment for social service practitioners. To this end, the Social Service Professions Act and the Social Services Act will be reviewed and implemented. All professions in the social welfare sector will be graded appropriately and job descriptions will be benchmarked for child and youth care workers, as well as social auxiliary workers. This will be done in collaboration with our partners in the new SA Council for Social Service Professions and the professional boards to assist in completing this process. Training manuals for capacity building on the service delivery model will be developed, and 50% of managers and service professionals will be trained in this financial year. Research into the norms and standards for social service provision will be conducted in all provinces with a view to developing norms and standards for approval.

With regard to services for people with disabilities, the draft policy framework on disability has been finalised and the guidelines for support services to children with disabilities will be developed during this financial year. The existing policies are not sufficient to address the needs of this vulnerable group. Therefore the department will conduct research into the needs of people and children with disabilities. To this end, an increase of R1 million has been allocated.

The age of hope is reflected in the passing of the Older Persons Bill in Parliament last week. The implementation of this Act signifies better and more access to care and services for older persons. A significant increase of 32% has been allocated for the completion of the draft regulations - the draft South African plan of action on ageing, developing the charter on the rights of older persons and the guidelines for the transformation of old age homes and service centres to promote accessibility. With regard to population development and research, the country’s most important population challenges include mitigating the demographic impact of the HIV/Aids epidemic and to promote youth development and gender equality. The main thrust of our interventions is to strengthen the capacity of government, especially in the local sphere, to respond to population trends that shape the social environment.

Government wants to build a social security system that is sustainable. As the social sector’s contribution to Asgisa, we are responding with a programme called Gwebindlala, which aims to provide income support while simultaneously developing the human capital of beneficiaries through skills development and job-placement services.

Gwebindlala will address vulnerability, social exclusion and hunger or poverty. We cannot support income assistance without other interventions. We attach great importance to the fight against the manifestations and causes of poverty and underdevelopment. This underlines the critical roles that have to be played by all cadres of social development professionals, namely social workers, auxiliary social workers, child and youth care workers, probation officers and community development practitioners. I thank you. [Applause.]

Mr M V NGEMA: Chairperson, Deputy President, Ministers and the honourable House, Nadeco (The National Democratic Convention) approaches this Social Development budget debate with a bigger picture in mind, which is that social development is necessary because of poverty, and it is this fact that causes Nadeco to cautiously welcome the new SA Social Security Agency.

Until now, provincial departments of social development have been so preoccupied with the administration of pensions and grants that social development projects, which are vital to the reduction of poverty, have underperformed. This situation can now be corrected, because, as the Deputy Minister said, with Gwebindlala government can indeed find time to address hunger.

Concern has been expressed about the sharp increase in the numbers of beneficiaries over the past three years and about whether the social assistance system would be sustainable, should the numbers of beneficiaries continue to increase at the current rate. The department and the provincial governments will have to ensure that the removal of social security allocations leave the provincial departments with adequate budgets, to undertake the huge tasks that hitherto have been obscured and inhibited by the budget load of social security.

The development of social assistance policies for families, for children and for disabled persons has taken a long time, and each year the estimates of national expenditure notes this work …

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order! Hon member, your time has expired.

Mr M V NGEMA: Nadeco supports the Budget Vote. [Applause.]

Mr B M MKONGI: Chairperson, Deputy President of the Republic of South Africa, hon members, the work of the Department of Social Development is aimed at providing comprehensive and integrated social development services to vulnerable and poor communities and individuals in South Africa.

As a constitutional requirement, the department is responsible for the establishment of policies within which social development services are delivered, the monitoring of the implementation of policies and the delivery of services at provincial level.

The Department of Social Development has, for the past decade, placed a significant emphasis on achieving efficiency and sustainability with regard to the social assistance system. From having inherited a fragmented social assistance system that comprised different departments, social assistance is now provided within a unitary policy framework, and a national agent has been established that will eventually be responsible for the delivery of grants in all provinces.

In his Budget Vote address of 2002, the Minister of Social Development, the hon Skweyiya, focused his attention on the need to put children first. He was pleased to announce that more than 2,6 million children under the age of seven years had been registered for the child support grant. That was a significant increase from a mere 60 000 in 1999. This was boosted by an announcement made in the same year by the President of the Republic to increase the age of children eligible to receive grants to the age of 14 years.

Today social grants are provided to an estimated 10,8 million people, the majority of whom are older persons and children. It is indeed true that today is better than yesterday and tomorrow will be better than today.

The estimated cost of social assistance for the new financial year amounts to R61,5 billion, compared to R55 billion for the previous year. The challenge is whether government will be able to sustain the sharp increase in beneficiary numbers and also whether the social assistance system will be sustainable should beneficiary numbers continue to increase at this rate.

It is, therefore, of pivotal importance that the department ensures that its social assistance policies are applied uniformly in all provinces and that grants are targeted at eligible beneficiaries.

Last year this Parliament celebrated the 50th anniversary of the Freedom Charter, an authentic document of the people of South Africa. Clauses of the charter are embedded in the founding principles of our new South Africa and in the Constitution. The charter expressed, in essence, a vision of a society that is both inclusive and sensitive to the rights of the most vulnerable members of our society.

Today our government, under the leadership of the ANC, has achieved much in ensuring that the fundamental principles enshrined in the charter become a reality for all. This indeed is evident from the commitment of the state to the core principles of the charter, and correctly so.

During the year of the 50th anniversary of the charter, the Minister of Social Development, in his address on Budget Vote 18, drew attention to the direct relevance of the objectives contained in the charter to the work of the Ministry and the Department of Social Development.

In this regard he had this to say:

Eleven years after the inauguration of our democratic dispensation, we have achieved much in ensuring that the fundamental principles set out in the charter become a reality for all our people.

To achieve this goal, in particular the provision of security and comfort for all, his department followed a path that sought to ensure the provision of comprehensive social protection services by not in any way walking away from its obligations to come to the aid of the poor – the needy - bearing in mind available resources.

In the year 2000, the Department of Social Development, together with civil society organisations and other important stakeholders, adopted a 10-point plan on social development priorities. Central to this plan was ensuring the provision of comprehensive social protection services against vulnerability and poverty to as many deserving South Africans as possible, in an effort towards ensuring that we care for all our people and restore dignity to them.

Our government presented in this House the norms and standards for social assistance security delivery. At that time the department had an unacceptably low ratio of staff to beneficiaries, and it indeed continued to enhance its capacity in areas in which there were substantial inadequacies. These inadequacies included, among other things, administrative and institutional reform, personnel development and fraud prevention and detection. To ensure the programmatic expression of the norms and standards, our government embarked on an improvement programme, with a dual focus on enhancing the integrity of the social security system and the quality of the services we are delivering.

As the Minister of Social Development said, it is fitting to acknowledge that in a number of areas our government has improved the capacity of the grant system to ensure that the right people receive the right grants in a manner that respects their dignity.

In 2002 the government received recommendations on a comprehensive, affordable social security system for South Africa, which were published by government for public comment in the same year. These recommendations covered a broad spectrum of social security issues relating to poverty, health, unemployment, retirement and measures to support people with special needs.

In reponse to that, in 2003 the ANC assured South Africans that our attack on poverty was underpinned by our desire to empower our people to extricate themselves from this poverty, and that we were creating adequate social nets to protect the most vulnerable of our society.

This year, as before, our government will focus on improving the efficiency and effectiveness of social grant spending and reduce the risk of the abuse of social grants. These measures include, among other things, the continued implementation of the comprehensive antifraud detection and prevention plan, the application of the means test and a review of the eligibility of all beneficiaries.

In dealing with the comprehensive antifraud detection and prevention plan, in 2004 our government embarked on a campaign to offer indemnity to all those who were illegally accessing social grants. This was to ensure the integrity of the grant administration system.

The integrity of our grant administration system became a success, although some people did not come forward voluntarily to declare their illegal access to social grants. This behaviour necessitated the Minister and his department to resort to enforcing the law. This began with the public servants and syndicates behind much of the fraud.

A key government human resource database was interrogated with the State Information Technology Agency, the Government Employees Pension Fund, the government employee salary system hereinafter referred to as Persal, and the Department of Home Affairs, the Department of Justice and Constitutional Development and the Department of Correctional Services.

As a step forward in improving this integrity, the Department of Social Development together with the SA Police Service and the National Prosecuting Authority, came together in an effort to combat fraud and corruption. The department has made considerable efforts to ensure that fraud and corruption are addressed at provincial level.

Through the ongoing campaign to eliminate fraud, thousands of people have come forward to apply for amnesty in relation to grants illegally received, and large numbers of provincial social services officials have been charged with fraud and corruption.

To complement these efforts, our government has moved a milestone in implementing three pillars of the system of our comprehensive social security. The comprehensive social protection programme is responsible for the development and monitoring of policies and norms and standards for the comprehensive social security system. This programme further assesses the socioeconomic and fiscal impact of social security programmes.

However, the allocation to this programme amounts to R48,8 million for the 2005-06 financial year, nearly 75% lower than the allocation for the previous year. This reduction is as a result of the SA Social Security Agency taking over some of the functions previously located in this programme. This will mean that provincial departments responsible for social welfare services will have to start reorienting resources for the delivery of social welfare services.

The national department will, therefore, play a supportive role in ensuring that provinces are able to focus on service delivery and that the funding mechanisms for these services function effectively.

In conclusion, the central aim of transformation is to improve the conditions of the people, especially the poor. In order to deal with the crushing poverty to which millions have been relegated, government will intensify its programme to provide food security and basic nutrition to those in dire need. This has to be based on proper tracking, improvement in efficiency, and integration with community development.

The programme to restructure the system of pensions and grants will continue to ensure that all eligible citizens are afforded equal treatment. Thank you very much. [Time expired.] [Applause.]

Mr B E PULE: Chairperson, allow me on behalf of the UCDP to congratulate the department on the following notable achievements, which have, of course, already been mentioned by the previous speaker.

During the past decade the department placed significant emphasis on achieving efficiency and sustainability with regard to social assistance. That is appreciated. The department inherited a fragmented social assistance system that comprised 13 different departments, and this system is now provided for within a unitary policy framework. That is appreciated.

The establishment of the SA Social Security Agency (Sassa) is an important project, which will take over the delivery of social assistance from April 2006, though not in all provinces.

Social grants are provided to an estimated 10,8 million people who are mostly older persons and children. That is also very much appreciated. The estimated cost of social assistance for the new financial year amounts to R61,5 billion, as compared to R55 billion allocated for this purpose for the previous financial year.

Having said that, the following, in any case, merit attention. The development of a social assistance policy for families, children and disabled persons has taken too long. Each year the estimates of national expenditure note this work, but the target dates for completion change. Targets set by the department are either unrealistic or there are capacity challenges that cause delays in the process.

For persons living with HIV/Aids, access to disability grants has reportedly been challenging, as grants are only available when a person reaches a certain stage of the syndrome, which may be too late for the grants to be effective.

Regarding the social security transfers and administration programme, the programme is responsible for providing continued support to Sassa in rolling out the full function. The allocation for the establishment of Sassa grows from R135 million in 2006-07 to R167 million in 2008-09. It is doubtful whether this increase will be adequate for the agency to take up its grant administration responsibilities in all the provinces.

It should be clarified what arrangements, again, have been made with regard to social …

The HOUSE CHAIRPERSON (Mr G Q M Doidge): Order, hon member! I regret your time has expired.

Mr B E PULE: The UCDP supports the budget.

Ms S RAJBALLY: Chairperson, Minister and Deputy President, when we look at this year’s budget allocation of R80 billion to this sector, we realise that though the amount is huge, an even greater challenge is to deliver to an estimated 10,8 million social grant beneficiaries.

Concern is expressed regarding the steep increase of social assistance costs from R55 billion to R61,5 billion - whether this social need will continue to grow as rapidly during forthcoming financial years. However, we do note that there are many persons who qualify for social grants who are not yet on the system. We hope that with the introduction of the SA Social Security Agency, improvement in delivery and accessibility of services to those who qualify will be attained.

This sector has been severely hampered by the defrauding of the grant system by many foreigners and locals. An estimated 43 000 civil servants have been wrongfully claiming social grants, with an estimated R50 million per annum being child grants. A further 79 000 people have also been removed from the programme by voluntarily stopping to collect these funds, while another 36 000 people voluntarily requested to be removed, noting that the long arm of the law is finally clamping down on the perpetrators.

While it is shocking to see how many people have been defrauding the system as these funds could have been used in developing and providing other basic needs to communities, the MF feels that the department has invested in the right technique of amnesty and punishment in order to deter these criminals. We do, however, continue to feel that the funds allocated for pensions, social grants and so forth need to be re-evaluated and brought into line with cost-of-living standards.

We return to the importance that this department has placed on poverty alleviation and reducing the impact of HIV/Aids on poverty- stricken communities. Noting its important function and the dependence of our people on this sector, we welcome it as the second highest in the social cluster in terms of allocations for this financial year.

We believe in the fervent effort to stamp out fraud and corruption, and realise how much this is costing the state. This effort shall certainly open the way for greater and more efficient service and delivery.

Hon Minister, in your speech you mentioned that more social workers are needed and that your department was looking at engaging more social workers. For this, we thank you very much and wish you all the success. The MF supports Budget Vote 18. Thank you very much. [Applause.]

Mnu B M SOLO: Sihlalo, Sekela-Mongameli, Mphathiswa ohloniphekileyo, Sekela- Mphathiswa namanye amasekela abaphathiswa akhoyo apha, malungu ahloniphekileyo ePalamente, nabantu boMzantsi Afrika, kwiminqweno yethu yokuba siphile impilo engcono sihlala siyijongile into yokuba sibe siluluntu olwahlukeneyo. Kukho umsantsa omkhulu phakathi kwamahlwempu angathathi ntweni kunye nabo banento yonke, ngokugqithisileyo. Aba bathi badle, badle, behlekela phezulu, kube kukho abo soloko bejongile, belindile, benqwena, benethemba lokuba mhlawumbi bangashiyelwa. Yingxaki enkulu ke le kubantu bonke baseMzantsi Afrika, ekufuneka ukuba sonke siyilungise. Sinabantu abaninzi kakhulu abaphila phantsi kweemeko ezinzima, abahlwempuzekileyo. UKhongolose watsho kwamhlamnene ukuba uzimisele ukuba abantu bonke baphile impilo efanelekileyo, engcono, ngakumbi abantu abahluphekileyo, abamnyama. (Translation of isiXhosa paragraphs follows.)

[Mr B M SOLO: Chairperson, Deputy President, hon Minister, Deputy Minister and other Deputy Ministers present here, hon members of Parliament, and the people of South Africa at large, in our wish for a better life we must always keep in mind that we are a diverse nation. There is a distinct gap between the haves and the have-nots. There are those who benefited and laughed loudly, while others are waiting in anticipation with the hope to get the leftovers.

This is a big problem that South Africa is facing, which needs corrective measures. There are large numbers of people living in poverty. The ANC is committed to improving the lives of all our people for the better, especially poor and black people.]

In the 2004 manifesto of the ANC we said we would enter into a contract with our people to not only construct a society that cares, but, further, to reduce poverty by half through economic development and comprehensive social security, and further ensure that all South Africans, especially the poor and those at risk - children, the youth, women, the aged and people with disabilities - are fully able to exercise their constitutional right to enjoy the full dignity of freedom. The Budget Vote of 2006-07 should be seen in that context. It should be seen as realistically responding to the question asked in the ANC manifesto: “What should we do together in the next five years practically to meet these objectives of creating work, fighting poverty and promoting equality?”

Of course, the manifesto has a whole range of response programmes, from growing the economy, having sustainable livelihoods, access to services, comprehensive social security, etc. It then looks at how these will be done. Amongst a whole range of others, the manifesto indicates the need to improve the system of monitoring and evaluation in order to improve the implementation of all these programmes through stronger monitoring and evaluation units.

These programmes of the Budget Vote speak to these issues in practical terms. They make provision for a strategy, and regulatory and oversight management. They attempt to reduce the whole thing to a project. For this to happen, about R27,842 million has been set aside for this new programme.

This programme is crucial for strengthening the department’s capacity to exercise its regulatory and oversight role in relation to implementation partners, public entities and other national institutions. It will deal with both the vertical and horizontal integration of sector policies and strategies, focusing on aligning experiences and aligning strategy with business to ensure optimal performance and use of resources. Further, it will co-ordinate, monitor, evaluate and assess the department’s performance in meeting its own objectives and its overall contribution to the country’s development.

In a nutshell, this new programme is aimed at strengthening the department’s capacity with regard to oversight over programmes and institutions that report to it. Accordingly, the system of service will be improved particularly at provincial and local government levels, so as to ensure that today is better than yesterday and that tomorrow will be a different day from today.

This will instil the age of hope, as the department would be proactive rather than being an obstacle to the achievement of the goal of a better life for all, because of insufficient attention to the critical issue of the effective and speedy delivery of services, as stated by President Mbeki in the state of the nation address of 2006.

This is one element in the set of interventions espoused in the Accelerated and Shared Growth Initiative for South Africa, commonly known as Asgisa. Whilst we recognise the significant progress made to alleviate the poverty affecting millions of our people and the strides made to expand and modernise our economy, we still recognise that more has to be done. The progress made signifies the hope that we will meet our goals or set targets. The President put it clearly when he said:

It is because of what these millions did that our people know from their own experiences that today is better than yesterday, and are confident that tomorrow will be better than today.

The President made a clear call to move faster in addressing the challenges of poverty, underdevelopment and marginalisation confronting those within the second economy. As such, we must sustain and improve the effectiveness of our social development programmes targeted at providing a cushion of support to those who are most exposed to the threat of abject poverty.

Isilungu ke asitolikwa; kunjalo, siza kuyenza loo nto, silungiselela abantu bethu, njengokuba etshilo uMongameli. [This is self-explanatory; it is so, and we are preparing for that, as the President stated.]

It is inspiring to see the department adhering to this, making provisions to create tools that will ensure service delivery and that services are taken to a higher level through such a programme, in order to ensure better services so that the hope of our people is not in vain.

Isebe ke liyabonakalisa elubala ukuba le nkqubo intsha elize nayo iza kuzama ukuba silwe nendlala, silwe nobuhlwempu. Phofu ke asinto yethu ukuphila ngamalizo thina bantu bamnyama. Kodwa ke xa iimeko zingavumi siye sibe neenzame esizenzayo, sikhuphe le nto kuthiwa yinkomo yenqoma. Nokuba isengwa kubhekwa, noko indoda iye ikwazi ukuba yenze izapholo, iseng’ ubisi, ikwazi nokulima.

Ngoko ke kufuneka siluqonde ukuba uhlahlo lwabiwo-mali lwenziwe njani na. Kungoko kukho le nkqubo intsha, eza kuzama ukuqinisekisa ukuba bonke abantu bayalungiselelwa. Ezinye ke izinto ezithethwayo apha zibonakalisa elubala ukuba laa madoda atya kwakudala, aphinda atya. Asatya nangoku, kwaye aphangela thina bantu ekufuneka betyile ngoku. [Kwaqhwatywa.]

Awayiqondi le meko esiphila phantsi kwayo, ngoba wona atya, izisu zide zabomvu. Afana nezinja ezithi nokuba sezityile, uthi xa usondela uzama ukwahlula ukutya, uyive igragrama, kubonakala ukuba ingathi noko ayithandi ukuba usondele. Ingaze ikulimaze xa kunjalo.

Kufuneka sizilumkele ke izinto ezithethwa ngala madoda, ngoba awayiboni le nto siyenzayo, yokuba sizama ukulungiselela abantu bethu. Ngalo lonke ixesha sisenza imizamo, sisiza neenkqubo ezintsha, wona awaboni. Atyile kaloku, ahluthi. Kodwa ke mawabe nomzamo awenzayo, akhe akhuphe kula maqhekeza anawo.

La madoda akwiinkampani zonke ezikhoyo kweli lizwe. Anezabelo azishiyelwa ngooyisemkhulu emva kokuba beba iinkomo zethu. [Kwahlekwa.] Sithi noko mawabe nendlela yokubuyisa. Oyisakala nokwenza oku kuchaziwe kwinkqubo i- Asgisa. Kufuneka ngalo lonke ixesha siwakhumbuze ukuba noko sele edlile, kwaye ayaphinda ayatya. Afuna ukutya ngecephe elikhulu.

Masikhumbule ukuba noko kukho abantu abangamahlwempu, abangathathi ntweni. Aba bantu abazenzanga. Siyazi ukuba aba bahluthayo batya kwamhlamnene, xa babesiba iinkomo zabantu bethu, bephethe nalo mqulu bawutolika ngale ndlela bawutolike ngayo.

Nizibile iinkomo zona, naze nabulala. Sithi ke ngoku, njengokuba senihluthi, noko masenzeni imizamo ukuze kule demokhrasi nakolu xolelwano, nisiqhekezele nathi. Siyabulela. [Kwaqhwatywa.] (Translation of isiXhosa paragraphs follows.)

[The department has proven that the newly introduced programme will help fight hunger and alleviate poverty. Nevertheless, maintaining our lives through charity is not black people’s way of living. Whenever we found ourselves in situations beyond our control, we would be given a cow. Although one would not get ownership of the cow, one would be able to get milk and plough the fields.

We must understand how the budget is calculated. For this reason the reason the new programme was introduced, it caters for all people. Another aspect highlighted in it is the fact that those who benefited long ago are still being advantaged. They are now blocking our chance to gain. [Applause.]

They do not understand the prevailing situation we are faced with, because they make big profits. They are like dogs that feed themselves, but still chase you when you want to divide the food. These dogs show you that you are not welcome. They can even injure you in that situation.

We must be careful about what the fat cats say. They see things differently. They do not understand that we are paving the way for our people. Every time we introduce new programmes they see things differently. They have enough on their plates, therefore, they must help by making a contribution towards development.

These men are found in all the companies of this country. They inherited shares from their grandfathers after they stole our cattle. [Laughter.] They must return part of what they have gained. They are unwilling to do what is expected in terms of Asgisa. We have to remind them every time that they gained and that is now someone else’s turn. They want to get a bigger share.

We must remember that there are poor people who have nothing. This is not their fault. We know that those who are rich benefited long ago, even before they stole our cattle. They had a document, the Bible, that they used as a tool and interpreted it as they wished.

You stole the cattle and you killed. We now say you have had enough; let us make an effort to get something back from you, in this democracy and reconciliation. Thank you. [Applause.]]

Mr S SIMMONS: Chair, since the first democratic budget, substantial allocations have been made to the Department of Social Development in order for it to achieve its core function and its support functions. Unfortunately, despite the substantial allocations, the Department of Social Development has been unable to execute fully its constitutional mandate.

The past few years have seen the department boasting about its achievements of gradually increasing the social security net, and rightfully so. The problem is that by the department’s own admission, it has, to date, had a scary number of failures which it prefers to call challenges.

After the first two or three years of democracy, the expansion of the social security net posed significant challenges, especially logistically, because of the greater number of people having to benefit from social grants. But after more than 10 years we cannot still refer to these as challenges – they now become failures.

These failures, or challenges as the department prefers to call them, include the fragmentation of the social grant system, poor customer service, poor financial management and disturbing levels of fraud. The question now is: To what extent will the department be able to successfully meet these challenges, given the establishment of the SA Social Security Agency? I sincerely hope that this is not an attempt by the department to shift accountability from the department to its agency. It is ultimately the core purpose of the Minister to take political responsibility for delivery by the department.

In conclusion, I want to express the hope that in the interests of the most vulnerable people in our society, the department, in conjunction with the SA Social Security Agency, will be able to produce an effective and efficient social security system with improved levels of customer service and better financial management that is corruption-free - all in the true spirit of Batho Pele. The United Party of SA supports the Bill. I thank you.

Ms H WEBER: Chairperson and hon Minister, it is alarming that such a large amount of money is budgeted for fraudulent claimants. This poses a major challenge to the department. The Department of Social Development is important for improving the lives of those South Africans with special needs. Here the disabled and the elderly come to mind.

Imagine how much more could be done for these vulnerable groups with that money? As previous speakers have said, stringent steps must be taken to curb this practice. The DA would like to see faster action and stiffer sentences both in terms of the recipients and others who participate in this practice.

The plight of the elderly has been partly addressed by the amended Older Persons Bill, but there is room for improvement. Much more respect for the elderly must be taught to the youth; even at schools this should be addressed. The elderly are very often considered a commodity to bring in a pension and care for grandchildren and sickly children.

Without the co-operation of many other departments, the department cannot function efficiently. The SA Social Security Agency must speed up its delivery of grant payments quickly and efficiently. Home Affairs must supply documentation correctly and quickly. The Department of Agriculture has failed dismally in training people to have sustainable food gardens. Vegetable seeds were supplied to recipients of food parcels but this was not successful. Too many agricultural officers have lost touch with the soil and prefer to sit in sterile offices.

The Department of Health fails to see that necessary medication is always available at clinics. The impact of HIV/Aids remains alarming. No matter how the figures are fiddled, this scourge is not being addressed. Without a faster roll-out of antiretroviral drugs, we are heading for disaster. The ripple effect on society by way of child-headed households is alarming.

The Department of Education must encourage school feeding in impoverished areas. This encourages children to go to school where they can be fed – both in body and in mind. Most importantly, the problem of social workers has to be addressed with the utmost urgency. Everything revolves around what social workers do. Without the gallant efforts of the nongovernmental organisations, those in need in South Africa would be in a sorry plight.

NGOs make up for many of the government’s failings in delivering services and caring for the poor. The government recognises this and money is given to them. Not only are NGOs reliant on these funds, but they are also reliant on grants.

In these two areas I want to draw the department’s attention to what is happening. Many shelters for orphaned and abandoned children have been waiting for three years for grants, only to realise that the applications have been lying in cardboard boxes in offices all along. This is due to neglect from officials, and stringent measures must be put in place to ensure that the grant applications are processed timeously.

The second concern is the cutting of grants to the NGOs of Gauteng. This caused a significant cutback in services to the most needy. The irony is that this money was then allocated to the Gautrain project. We must get our priorities right. Are people more important, or is the Gautrain more important? Most rural people have not even heard of the Gautrain.

Must the important budget of Social Development be the one to be tapped into for this project? Are there not other departments that could be tapped into? Unless we do more for bettering the lives of our people, the beggars on the streets will continue to grow in number and street children will become the norm and not the exception. I thank you. [Applause.]

Mr T M MASUTHA: Chairperson, hon Minister, hon members, as I rise in support of this Budget Vote, allow me to anchor my contribution to this debate on the theme of “Fighting poverty and building social cohesion”, for I believe it is essentially what this Vote is about.

But before I proceed with my contribution to the debate, allow me to respond to some of the comments and distortions that have been made this afternoon. The child protection register, Mr Waters from the DA, as you are aware, is a new tool to fight abuse and the neglect of children. [Interjections.] For years and years we had laws introduced under the apartheid regime purporting to protect children. None of them ever contained an important tool such as that.

The Child Care Act of 1983, for example, requires people to report such instances of suspected abuse and neglect. And yet, it was only after 1994 and, in fact, very recently, that despite a clear provision in the existing Act, through regulations, a child protection register was created. So, it is a new thing. Give it time to develop. You cannot expect new systems and new tools to be fully functional overnight. [Interjections.] It’s unrealistic.

Let me also respond to the comment about the shortage of social workers. Social workers under the apartheid regime were relegated to status of insignificance. Their wages and salaries were at the bottom of the pit, and, as profession, they were never given the recognition that they deserved.

So, let us not create the wrong impression. I know you have just got Cape Town, and probably you are aiming higher. [Laughter.] [Applause.] But it is always important and, in fact, honourable to always give the other side of the picture. That is being honourable.

Without derailing me from the focus of my speech, allow me to proceed and to state that Social Development is one of the lead departments in the ANC- led government in terms of ensuring efforts to reduce poverty and improve social cohesion. It is also a key department in government’s attempt to mitigate the impact of HIV/Aids on families and communities. In line with this, the department’s aim is to ensure the provision of comprehensive social protection services against vulnerability and poverty within the constitutional and legislative framework, and to create an enabling environment for sustainable development.

The department is responsible for policy and oversight in the critical areas of social assistance and social welfare services. The recommendations to government made in 1996 by the Lund committee of inquiry into income support for children, households and families, for instance, gave impetus to the launching in 1998 of the child support grant.

This report, in analysing patterns of poverty in South Africa with special reference to women and children, made the following observations at the time:

South Africa is characterised by extremes of wealth and of inequality. It is classified as a middle-income developing country, but has two nations within it - a small number of very wealthy people and the vast majority who are very poor. The Project for Statistics on Living Standards and Development, PSLSD, shows that poverty is racially and spatially distributed and has a gender dimension. Ninety-five per cent of the poor being African; 75% of the poor live in rural areas, although only just over half of the population lives there; and many of the very poorest households are headed by younger women in rural areas.

The report proceeded to state that:

In general, poverty rates and shares are worst for the African population and white South Africans are the wealthiest. Indicators for coloured people tend to look more like those for Africans though they are not as extreme. Social and economic indicators for the Indian population have come to resemble those of whites in recent years.

Over the past three years, there has been a large expansion of the social assistance system, with beneficiary numbers increasing from 3,8 million in April 2001 to 9,2 million in January 2005. All these achievements have, of course, been made possible through sound policies adopted by the current government in managing the economy to ensure that we as a nation enjoy, as we do today, enhanced capacity to meet our national goal of alleviating poverty.

In his state of the nation address, the President alluded to Rudolf Gouws who, having made a number of observations about the progress we have made as a nation, concluded by stating:

Faster growth, coupled with efforts to improve the environment for doing business and addressing the plight of the poor more effectively, means improved chances for a sustainable improvement in the general welfare of all South Africans.

The President then proceeded to state:

We agree with the observations made by Rudolf Gouws. Indeed, because of the factors he mentioned, we have for instance, with 90% coverage of more social grants, almost met the objective we set for ourselves in 2002 of ensuring that all who are eligible for these grants receive them within three years.

This, indeed, is a promise made to our people and a promise kept. The ANC leads; the ANC cares.

The Minister of Finance in his Budget Speech gives greater specificity to this when he states, and I quote: “This is a mountain to be climbed in stages, joys to be reached step by step.”

I refer, for example, to the growth in income support to vulnerable households through social security and social assistance grants. This has been the fastest growing category of government expenditure since 2001, and it now amounts to R70 billion a year - 3,4% of the GDP and reaches more than 10 million beneficiaries.

Social grants contribute more than half of the income of the poorest 20% of households and have doubled in real terms over the past five years.

Recent survey data has provided clear empirical evidence of significant improvements in child nutrition associated with the child support grant.

Ke nnete tlala e mo kotsing. Re re go bommago bana, ke kgale le swere thipa ka bogaleng, bjale tlou e wele mohlabeng. Tona ya tsa Leago o e wišitše. Re re tlang le dithipa tša lena le tle le segele bana ba lena ba se hwe ka tlala. (Translation of Sepedi paragraph follows.)

[We are really dealing with poverty alleviation. We are saying to mothers out there: You have been working too hard, and now is the time to reap what you have sown. The Minister of Social Development has made provision for you to benefit from the grants so that you will be able to feed your children.]

In addition, there has been significant progress in improving the administrative and institutional framework for the social assistance system, eliminating leakages through massive defrauding of the system and in developing legislation for and oversight of social welfare services.

The departmental mandate has also widened in recent years with growing responsibility for a broad set of initiatives to improve the livelihoods of South Africans through co-ordinating home-based care for people with HIV/Aids, food relief programmes, a focus on programmes for particularly vulnerable groups, and oversight of the National Development Agency.

An area of concern for the department has been the rapid growth in social assistance grants and transfers, and questions are being asked regarding the sustainability of such growth, especially regarding the foster care grant. Grant expenditure has grown from around 2% of the GDP in 2000-01 to more than 3% of the GDP in 2004-05. This is expected to reach 3,4% of the GDP in 2005-06.

The child support grant reached 5,5 million children in January 2005, and today over 7 million children are benefiting, while 1,3 million people are receiving a disability grant and more than 2 million women above 60 and men above 65 are receiving the old age grant.

In the context of this rapid expansion, ensuring the integrity of the grant system is a major priority and especially applying rules for eligibility consistently and effectively. The department is addressing this through institutional restructuring, implementing norms and standards for grant administration and through having a sharper focus on fraud prevention. Operation Isidima, launched in late 2004, is a short-term measure to improve the efficiency, effectiveness and impact of the department’s service delivery, and it centres on improving business processes and conditions at paypoints. Social grants alone are not enough to address social challenges such as the breakdown of family structures resulting from crime, violence, loss of parental support owing to HIV/Aids, and substance abuse, drug dependency, etc, remain challenges to be confronted head-on.

In addition to income support, the department therefore also provides developmental welfare services. In this regard, the department will oversee the completion of the legislative framework to protect and support children, disabled persons, older persons and women.

To further protect children, a national child protection register was introduced in seven provinces. The register creates a database of information of children who have suffered some form of abuse and neglect. The register was said to have been completed in 2005 as well as the implementation of a national policy framework for the prevention and management of child abuse, neglect and exploitation. I thank you. [Time expired.] [Applause.]

The MINISTER OF SOCIAL DEVELOPMENT: Thank you, Mr Chairman. First of all, I think I want to acknowledge basically the way the House has been working with this department, and the role that has been played by different members of the portfolio committee, and how they have been able to assist both the department and the Ministry in facing the challenges that face South Africa as a whole. These challenges are not small, because they affect more than 50% of the people in this country.

Hence I take it as a challenge, personally, and also as a challenge to government to try to keep ourselves focused on what we want to do as South Africans beyond party-political affiliations because, in that manner, we will be able to meet the challenges that face us all and ensure that we are more directed at what we all have agreed to - improving the lives of our people as a whole, especially that of elderly people, people with disabilities and children in general.

I welcome all the statements that have been made here because, in one way or another, they do reflect the care and the need to keep South Africans together and improve their lives, irrespective of their political affiliation as a whole.

I do quite agree and admit that as a department we still face quite a lot of challenges, and those challenges can only be met and satisfied if we work together. I accept and welcome the criticisms. We are looking at them, irrespective of party-political intervention. But, in so doing, I think we should be more constructive and face the realities of this country in a more acceptable way, in a way that brings us together to achieve what we want to achieve.

It cannot be agreed that it can only be the ANC or the government that is able to do that. This needs the support of almost everybody. I have many a time said here that whatever has been achieved in the field of social development cannot only be because of the ANC; it cannot only be because of the government. It must necessarily mean that all South Africans must take care and work together to ensure that the lives of our people are improved bit by bit.

It cannot all happen in a year or two. There is still a lot that ought to be done, until we are able to say that at least we have met and we have moved a little further than we were the year before.

As such, it is in that spirit that I am going to answer some of the challenges that have been put here, and I hope we agree on that. This does not necessarily mean only the ANC, it does not mean the IFP, nor does it mean the ID - or any other party. It means that, as this Parliament, we ought to come out clearly and work together to improve the lives of our people, because if we do not do that, we are creating a bomb for ourselves as South Africans. The whole world is looking at us to see whether what we promised in 1994, which emanated from the Freedom Charter and the struggle that we went through, is really possible to achieve.

That is why the ANC, on 8 January every year, puts forward the note that it does, not for the ANC, but basically for the rest of South Africa to be part and parcel of that. As such, I also welcome the comments that have been made, especially by the other parties - the ID, the DA, the IFP, the UCDP and everybody else. I think we are facing a challenge, which all of us have to bear.

But, until then, let me answer some of the questions that have been put here to me. The hon Mr Waters maintained that no detailed budget was presented to the portfolio committee. However I am told by the department and some members of the portfolio committee that budget figures were indeed presented at the high-level slide presentation. The details thereof were provided two weeks before the time to the committee, in the form of Vote 18, with a detailed explanation of expenditure trends.

However, when the hon Waters requested further details on the slide presentation, this was gladly provided to him by the Department of Social Development. The detailed budget was also contained in the strategic plan document circulated to members in advance. That is what I am told.

On the question of the lack of social workers, obviously it is quite clear

• we have been saying this for some time - that we do not have enough social workers in South Africa simply because, as other members have said, the way in which we all looked at the question of social workers as South Africans before apartheid and after apartheid, was not very fair in general. They were paid less than other professionals even with all their skills, which are sometimes even more than that of other professions. They study for, I think, four years. Teachers and nurses study only for two or three years, and then they go out there.

Previously they were not organised and they are still not organised at the present moment. Their voice is not heard in the bargaining chamber. Despite that, we ourselves thought that we should be able to do that on our own, and try to uplift them and listen to the demands that they are putting across.

I think we all agree that something has to be done. We agree, quite obviously, that we have to have a small indaba – that is yesterday -to look at the issues that are being raised there, and to look at the possibility of auxiliary social workers that could be deployed throughout the country. We are talking to the universities all over to organise that. I think there has been some separate budgeting by the department in order to deal with that.

Regarding that indaba, I am definitely sure all those hon members who are interested would be invited, openly and clearly, and they can look at this matter – as well as all the universities and technikons. In fact, we wanted all those, especially in terms of the rural areas where these people are needed more to do that and ensure that we at least have something moving. Also, the salaries are being upgraded as much as possible to make the profession of social worker more attractive to younger people.

I was talking to the Deputy President now. We have agreed that we should, as soon as possible, look at that - she says she has data on more than 6 000 graduates - to check if there is the possibility of taking those people, in terms of Asgisa, and make sure that they are trained as fast as possible at some of the universities in order to look into the question of the shortages that we have, especially in the rural areas of South Africa.

In so far as the budget is concerned, hon Waters, of the Central Drug Authority (CDA), I am told - and I think I believe – that the function of the CDA is the co-ordination and monitoring of the implementation by various departments, based on mini drug plans from each and every department.

Departments need to ensure they have an adequate budget for the implementation of these mini-drug master plans and, of course, we agree that each and every department should have an effective budgeting mechanism to take up the various challenges coming out of it in the clusters themselves that exist currently.

I am told about the R240 000 budget spent on cocktails in the last year. The vast amount of that money was for travelling from Pretoria to here for all those public servants that are involved in this process. Some of them are up there and over here in order to assist me with this Budget Vote. Mr Waters is originally from Gauteng, so I am told. I thought you came from the Eastern Cape, you see.

On the question of children awaiting trial, the Association of Children Awaiting Trial’s assessment of children is taken very seriously by the department: On a monthly basis 2 500 children are assessed at police stations, magistrate offices and various facilities.

Provincial departments have appointed additional probation officers in the past two years. The department has also allocated R9 million from the integrated justice system project for 2006-07 to the development of both a tracking and management system for children awaiting trial in the department’s facilities. The tracking system will be aligned to Correctional Services, the Department of Justice and Constitutional Development and the SA Police Service systems.

Regarding child protection, the ultimate effective functioning of the child protection register requires all provinces to have the necessary electronic equipment and skilled staff. It is expected by the end of the financial year that all provinces, including the Eastern Cape, will be linked to the central database at national level. The process of recruiting and training the relevant staff is under way.

The hon Dudley spoke on the limited budget for the implementation of the Children’s Bill and the delay in the implementation of the strategy on child abuse. The costing of both the Children’s Bill and the strategy for child abuse, neglect and exploitation is under way and has not been completed as yet.

It is, therefore too early to draw conclusions that the department does not have the budget or the capacity to implement the Children’s Bill, as this will be informed by the cost and implementation plans to be developed by national and provincial government.

Although costing of the strategy for child abuse has been finalised as indicated, it is important to ensure that some aspects of the strategy, which do not have huge cost implications, are implemented in the provinces.

Hon Mrs Dudley, on the issue of long delays experienced by families to access the foster care grant: Until the section 76 Children’s Bill is finalised in Parliament, the placement of children in kinship foster care will continue to be processed through the present Child Care Act, which requires a court order.

The department has, however, initiated some measures to speed up the placement of children in foster care. Our campaign on orphans and vulnerable children during 2005 resulted in the prioritisation of foster care by provincial departments of social development and the Department of Justice and Constitutional Development.

The department is currently developing a strategy to address the backlog in foster care at different levels of placement and aftercare. The strategy is expected to be completed by June this year.

In other words, what I am trying to say is that these issues are issues that challenge us all, and we should accept the roles individually, politically and party-wise that we should be playing in resolving these issues.

You cannot leave these issues to the public servants. You cannot leave them to the Ministers, and you cannot leave them to the provinces. They cannot be looked at as things that are party-orientated. They are duties that all parties in South Africa ought to participate in, especially when it comes to the issue of children.

They are things that affect us. They are things that all of us should participate in. We should not allow ourselves to be embarrassed in that there were things we could have stopped and roles we could have played more comprehensively, than what we are doing currently individually and collectively.

In other words, I do appeal again to the House to take the issues of social development as seriously as they take those of economic development. Because, without resolving those issues, without resolving the issues of employment, we will never be able to ensure that the issues that affect children, that affect the elderly, will ever be resolved.

On the issue from hon Mrs Smuts on the fact that the department reviews disability beneficiaries currently on ARV treatment, this raises the question on the need for income support. The law currently requires that grants be reviewed at regular intervals to validate the eligibility and the beneficiary status of all people who receive grants. The purpose is to reduce the possibility of fraud. The issues we are raising are issues that came from this House in general and that we are trying to address at the present moment.

For instance, all the time we have been concentrating all the time on the issue of each and everybody receiving a grant, and rightly so. But we came back to this House and said that if we concentrate on social security there is something that we are also missing, and that is the issue of the welfare services for the vast majority of our people. As such we all agreed with the ANC at its conferences in Mafikeng and Stellenbosch that we should address the question of having a social security agency, and this went through into law and we all participated in it.

Now that we have done that, quite obviously there is a gap that exists, that of welfare services, and that is something that all of us ought to be looking into. That is something that all of us should participate in. It is not nice when you hear that children and older people are being abused, and we are only giving them grants.

If we did give them grants and ensured that what we gave them went to them directly and improved their lives - that would be good. But basically, at the present moment, we are unable to ensure that those welfare services, which are part and parcel of their constitutional rights, are fulfilled.

I hope from now onwards, with the setting up of the agency, that we will concentrate on that and ensure that the laws that we are passing in this House will be implemented to the benefit of the poorest of the poor in this country, and older persons like the hon Mlangeni should be able to look at these issues and participate in them. I will be joining you on the older people’s side.

These are issues that are there that affect us all. They affect the communities from which we come. One of the issues that we are not concentrating on in this House and in South Africa is community building. Our communities are in crisis. This is shown quite clearly by the crime rate that we have currently in our communities.

The lack of strong families is one of the issues we ought to be looking at, not to fragment the whole process of uplifting our social lives in general. If we had strong families, if we had strong communities then some of the things that are happening today would not be happening.

That is why we are trying to give more attention to giving capacity to nongovernmental organisations and civil society. We are aware that even this budget that we are putting forward now is not enough, but we hope to increase it bit by bit, so that it plays quite an important role in looking after the children, protecting the elderly and building stronger communities and stronger families.

This is because without strong families, centrally controlled by the father and the mother and without ensuring that women are respected and have access to what is in the Constitution, we will never be able to resolve this. As much as we agree and thank this Parliament, we say we have to work and go together, and not be fragmented. [Applause.]

The HOUSE CHAIRPERSON (Mr K O Bapela): Thank you, Minister. In your introduction you spoke for 20 minutes, so, using my prerogative power, I gave you another 10 minutes. So, all in all, you have spoken for 50 minutes. Thank you for that.

That is a matter that the Whips should deal with – the duty Whips, in particular. If you wanted additional time, they should have asked you, but I did use my prerogative to give you that additional time because you did not use all of it.

Debate concluded.

Business suspended at 12:45 and resumed at 14:05.

                FEE SCRAPPING IN WESTERN CAPE SCHOOLS


                        (Member’s Statement)

Mr R P Z VAN DEN HEEVER (ANC): Madam Deputy Speaker, “The doors of learning and culture shall be opened” the Freedom Charter declares. The ANC is committed to working with the people in an effort to improve access to quality education.

The MEC for education in the Western Cape, Cameron Dugmore, recently announced that for 424 of the poorest primary schools fees would be scrapped. The provincial department of education has allocated R29 million to the first phase of the national no fees roll-out plan initiated by the ANC government. The initial roll-out will benefit more than 140 000 pupils in the province. The ANC welcomes the initiative taken by the MEC and the government of the Western Cape. Thank you. [Applause.]

              ELECTION OF WESTERN CAPE METRO GOVERNMENT


                        (Member’s Statement)

Mnr W P DOMAN (DA): Adjunkspeaker, die DA wens alle raadslede geluk met hulle verkiesing. Op almal, maar veral die ANC, wat die meerderheid munisipaliteite in die land regeer, rus ’n besondere verantwoordelikheid om toe te sien dat dienslewering en skoon administrasie nou voorkeur kry.

’n Besondere woord van sterkte aan uitvoerende burgemeester Helen Zille en haar veelpartyspan, wat die taak het om Kaapstad om te keer en uit te bou as ’n wêreldstad met gehaltedienslewering vir sy inwoners en al die besoekers van regoor die wêreld. Die feit dat kleiner partye, ten spyte van geweldige druk en intimidasie, kon uitstyg bó politieke verskille om te verhoed dat Suid-Afrika ál hoe meer ’n eenpartystaat word waarin die ANC alles wil domineer, is prysenswaardig. [Tussenwerpsels.]

In Kaapstad moet die ANC nou toon dat hulle ware demokrate is en hulle rol as opposisie op konstruktiewe wyse vervul. [Tussenwerpsels.] Die DA sal so ’n voorbeeld stel waar die party in die minderheid is.

Die swak politieke oordeel van die agb De Lille in die geval van Kaapstad het haar en die OD ontmasker as beleidlose opportuniste wat eintlik ook maar net die ANC ter wille wil wees. [Tussenwerpsels.] Enige pogings van die OD om Kaapstad te destabiliseer sal die bietjie kiesersteun wat die OD nog mag oorhê, vervreem en die agb De Lille se politieke beeld finaal verwoes. [Tussenwerpsels.] (Translation of Afrikaans member’s statement follows.)

[Mr W P DOMAN (DA): Deputy Speaker, the DA congratulates all councillors on their election. On all, but particularly the ANC, who governs the majority of municipalities in the country, rests a special responsibility to see to it that service delivery and clean administration are now receiving priority.

A special word of encouragement to Executive Mayor Helen Zille and her multiparty team, who have the task to turn Cape Town around and to develop it as a world city with quality service delivery for its citizens and for visitors from across the world. The fact that smaller parties, despite tremendous pressure and intimidation, could rise above political differences to prevent South Africa more and more from becoming a one party state where the ANC wants to dominate everything, is praiseworthy. [Interjections.]

The ANC will now have to show in Cape Town that they are true democrats and must fulfil their role as opposition in a constructive manner. [Interjections.] The DA will set such an example where the party is in the minority.

The poor political judgement of the hon De Lille in the case of Cape Town exposed her and the ID as opportunists devoid of policy, that really only wants to exist for the sake of the ANC. [Interjections.] Any attempts by die ID to destabilise Cape Town will alienate the little bit of voter support that the ID may still have left and will finally destroy the political image of the hon De Lille. [Interjections.]]

                   HIGH ACCIDENT TOLL ON SA ROADS

                        (Member’s Statement)

Mr V B NDLOVU (IFP): Madam Deputy Speaker, 15 people were injured in Tshwane on Sunday night after a military truck that was transporting troops to Walmanstahl for training crashed into a car in the city centre. The driver of the truck was detained by police for allegedly driving under the influence of alcohol. The police are also investigating charges of reckless and negligent driving.

The high accident toll in South Africa is a serious problem and claims many lives each year. People who continue to drive under the influence of alcohol are showing total disregard for the law and a total lack of respect for the lives of their fellow citizens. We urge the SA National Defence Force to launch its own internal investigation into this matter and take the necessary action to ensure the safety of their troops as well as other road users, and to limit the chances of similar incidents occurring when transporting troops in the near future. Thank you.

          ELECTIONS IN THE DEMOCRATIC REPUBLIC OF THE CONGO


                        (Member’s Statement)

Mrs M M MAUNYE (ANC): Madam Deputy Speaker, on 18 June 2006 the people of the Democratic Republic of the Congo (DRC) will go to the polls for the first time in 46 years to elect a government of their choice.

This will be the culmination of efforts by Africans to make their continent a better place. The commitment demonstrated by the people of the DRC communicates the message that they are determined to overcome their difficult past to make theirs a country of peace, democracy, economic growth, development and prosperity.

It is in this context that the ANC welcomes the efforts of the Congolese, the African Union and the United Nations to ensure peaceful and democratic elections in the DRC. We call upon all patriots to mobilise the international community to support the cause of the people of the Congo. I thank you, Deputy Speaker. [Applause.]

                    POWER OUTAGES IN WESTERN CAPE

                        (Member’s Statement)

Mr L W GREYLING (ID): Deputy Speaker, the recent power outages in the Western Cape have shown that we urgently need to diversify the energy mix in this province. The government’s response is to simply propose another nuclear energy plant along the same lines as Koeberg. This will once again centralise energy generation and make citizens vulnerable to further power outages.

In addition, nuclear energy has the longest energy payback period of all technologies, and we will be consuming our scarce energy resources before it is able to produce any.

The ID would like to know whether the building of this new nuclear plant is in any way tied to the agreement with France to supply Koeberg with a new rotor. The timing of this proposal seems very suspicious and leaves many unanswered questions. In addition to the billions which will be spent on this new nuclear plant, R16 billion will also be spent on the highly dubious pebble bed modular reactor.

Renewal energy in South Africa does not receive a fraction of this amount of spending, yet it holds the potential to deal with our energy crisis in an environmentally sustainable manner – R16 billion will provide 3 million households with solar water heaters and present South Africa with a saving of over 2 000 megawatts.

It is also ludicrous to the ID that the ANC, which was initially opposed to nuclear energy, is now prepared to spend billions of rands on outdated German nuclear technology while Germany has bought the rights to produce our cutting-edge solar panel technology. This technology holds the promise of bringing about a worldwide solar revolution, and positions South Africa as the leader in this field.

Surely it is time for the government to embrace the future and invest in innovative solutions that our own scientists are pioneering? I thank you.

           TRADE AGREEMENT BETWEEN SOUTH AFRICA AND INDIA


                        (Member’s Statement)

Mr M RAMGOBIN (ANC): Madam Chair, the Freedom Charter of the people of South Africa declares that there shall be peace and friendship in the world. In pursuit of this noble perspective, the ANC works tirelessly for, among other things, co-operation amongst the countries of the South in areas of economic sociopolitical programmes and in terms of efforts to ensure peace and equitable global relations.

In the past week our government and the government of India signed an agreement that will facilitate the easy movement of cargo ships between the two countries. The agreement also entails that the government of India will provide maritime training to our youth from previously disadvantaged backgrounds.

Today our trade with India stands at R14 billion. This agreement has the potential to improve these figures. This bilateral agreement reinforces our efforts in the context of centering South-South relations and co-operation.

The ANC calls upon the business community in our country to take advantage of this opportunity and establish relationships with their counterparts in India, and to further strengthen and consolidate the historical ties between the two countries, especially because this agreement stems from the principle strategic position of both India and South Africa. I thank you. [Applause.]

              MMABANA CULTURAL CENTRE AND ITS SUCCESSES


                        (Member’s Statement)

Mr I S MFUNDISI (UCDP): Deputy Speaker, there have always been questions about small places to the extent that when sceptics spoke of Jesus Christ, they asked what good had ever come from Nazareth. The trend continues today, hence some people are hard-pressed to associate internationally recognised icon former President Mandela with the sleepy village of Qunu.

The UCDP and its achievements of the past fall into this category. Very few people are aware of the Mmabana Cultural Centre in Mmabatho in the North West province. This cultural centre is the only one of its kind in the southern hemisphere.

The arts and sports centre boasts world-acclaimed products such as gymnast Tseko Mogotsi, a silver medallist at the World Tumbling Championships in 2001, and Chris Seabelo, the youngest fifth Dan Black Belt attainer in South Africa graded in Japan. In dancing, Tebogo Kgobokoe and Kagiso Ntseane, together with Tyrone Watkins and Salome Sechele, did well to represent South Africa in the world Latin-American dancing championships in Miami.

In the field of drama, greats such as Aubrey Sekhabi and the present executive at the state theatre Walter Chakela cut their teeth in this field at Mmabana. Musicians such as Bhudaza and Kagiso Boinamo, the opera singer, are all products of this cultural centre. The current Oscar award recipient, Presley Chweneyagae of Tsotsi fame, is also a product of the Mmabana Cultural Centre, having grown up in the sleepy village of Ramosadi.

This is but one example for the government to invest in the arts all over the country. Where there are no facilities, the government should build some, even in remote areas, because talent abounds in this country. The black-led government should hone and nurture youngsters to develop their talents by erecting facilities so that this country can pride itself in more similar facilities and achievements.

The UCDP has shown that greats do not come from places of glitz, glamour and glitter. We should guard against letting these young flowers waste their sweetness in the desert of no opportunity. I thank you.

              ILLEGAL PRACTICE OF BULKING PENSION FUNDS

                        (Member’s Statement)

Mr L M GREEN (FD): Deputy Speaker, the FD welcomes the swift action taken by the Financial Services Board (FSB) in giving all life insurance companies a deadline in revealing to the FSB and the public whether they have made secret profits from the illegal practice of bulking.

The FD furthermore commends the FSB pension fund registrar for bringing to our attention the fact that an estimated 60% of the large pension administrators have taken part in bulking, although most of them have not yet admitted as much. We commend the FSB for compelling companies to come clean on bulking by April 30 and that criminal prosecution could follow if companies refuse to give details of the secret bulking profits they have made.

The FD congratulates Mr Bruce Cameron of Personal Finance on the excellent exposé done on the illegal practice of bulking. We note with great concern from Mr Cameron’s article that Alexander Forbes, a company that manages several pension funds, has come under fire for secretly bulking together the money in pension funds it controls and negotiating higher interest rates from banks, then pocketing part of this interest without disclosing it.

The FD now calls on all insurance companies, including Old Mutual and Sanlam which also administer pension funds, to reveal to the FSB and to Parliament whether they have made secret profits as a result of bulking.

If this is established to be true, we call on the FSB to take the strongest possible action against such companies, and to ensure that the illegal profits are returned, with interest, to the affected pension funds. I thank you.

      IRREGULARITIES IN TENDER PROCEDURES BY ANC SENIOR MEMBERS


                        (Member’s Statement)

Mr R JANKIELSOHN (DA): Deputy Speaker, the DA recently requested the SA Police Service to investigate tender irregularities relating to two tenders in the Dihlabeng Municipality in the Free State province. This was after the ANC-run council ignored recommendations by auditors that this should be done.

One of these tenders involves a senior member of the legislature, who also happens to be the regional chairperson of the ANC. Now the same individual is involved in another scandal involving the sale of municipal property. Various other irregularities involving senior ANC politicians are identified by both the Auditor-General and other bodies at all levels of government every year. In many cases, the ANC uses its majority in legislatures to sweep allegations of wrongdoing under the carpet.

It is apparent that in some instances government has become a network of crime syndicates hellbent on plundering or stealing all our country’s resources. [Interjections.] Does anyone in the governing party have the guts to save our country from imminent destruction by a corrupted ANC cadre policy that undermines both the Freedom Charter and our democratic Constitution? Thank you, Deputy Speaker. [Applause.] Mr T M MASUTHA: Madam Deputy Speaker, on a point of order: Is it parliamentary for the hon member to accuse government of being a network of syndicates of crime? [Interjections.]

The DEPUTY SPEAKER: Hon members, it is difficult for me to follow the point of order. Hon Masutha, you have the floor.

Mr T M MASUTHA: Hon Deputy Speaker, my question is: Is it parliamentary for an hon member to accuse government of being a network of syndicates of crime?

The DEPUTY SPEAKER: I followed the statement, and the Table also concurs that it was very broad in the way it was given. But to make sure that we satisfy everyone, let us go back to the statement to check if there is any element of it being unparliamentary. Mr Masutha, will you please allow us time to study it and come back to the House on this?

Mr T M MASUTHA: I will certainly appreciate that, Deputy Speaker, because I think the remarks were quite disparaging.

           DEATH OF PROMINENT ANC LEADER IN KWAZULU-NATAL


                        (Member’s Statement)

Mnu B Z ZULU (ANC): Somlomo, uComrade uVeli Nyawo ubengomunye wabaholi baka- ANC abaqavile futhi ubengenele ukhetho lobukhansela endaweni yaseJozini. Ukubulawa kwakhe ngesihluku edutshulwa ngezinhlamvu eziyisishiyagalombili kushaqise abantu abaningi endaweni yaseJozini.

UComrade Veli ubulawe emveni kokuba kumenyezelwe emhlanganweni womphakathi lapho bekukhona ngisho imeya kamasipala obumhla ka-22 Mashi. Kuthiwe uthengisele amaSwazi umhlaba wakwaNyawo ehlangene no-ANC. Kuthe ngosuku olulandelayo wabulawa ngokudutshulwa emini enkundleni yebhola ebigcwele izibukeli.

Ukuhlaselwa kwabaholi baka-ANC ngalolu hlobo KwaZulu-Natali kukhombisa unya nenzondo eyatshalwa ezingqondweni zabantu balesi sifundazwe maqondana no- ANC. Thina njengeqembu lika-ANC siyakuchitha lokhu kubulala okuhleliweyo nokuqondiswe ebuholini bukaKhongolose.

Sinxusa onke amaqembu ezombusazwe KwaZulu-Natali ukuba eze sibambisane nawo ekulweni nalesi sihlava somdlavuza wokubulawa kwabaholi. Sinxusa kabanzi ukuba amaphoyisa abophe abagqugquzeli bodlame ababonakala bememezela esidlangalaleni ukuthi bazobulala, bagcine bebulele, badlula bangaboshwa. Ngiyabonga. (Translation of isiZulu paragraphs follows.)

[Mr B Z ZULU (ANC): Madam Speaker, Comrade Veli Nyawo was one of the prominent leaders of the ANC and he was a ward candidate for the Jozini municipality. His brutal murder - he was shot nine times - shocked many people in the area of Jozini.

Comrade Veli’s murder was announced at a community meeting on 22 March where even the municipal mayor was present. It is alleged that he sold the land of Nyamo’s tribe to the Swazis in collaboration with the ANC. The following day, he was gunned down in the soccer stadium packed with supporters.

This spate of killings of ANC leaders in KwaZulu-Natal demonstrates the cruelty and hatred that was left in the minds of people about the ANC in this province. As the ANC, we condemn this systematic killing of the ANC leaders.

We urge all political parties in KwaZulu-Natal to come together in the fight against this cancer of killing leaders. We urge the police to arrest the perpetrators of violence who are announcing publicly that they are going to kill. After that, they kill and they are not arrested. Thank you.]

Mr A M MPONTSHANE: Is it in order for the hon member to mislead the House by presenting things that are not factual about this story? [Interjections.]

The DEPUTY SPEAKER: Order, hon members! If the hon member would like to correct the information … [Interjections.] Order, hon members! Malungu ahloniphekile, siyanicela bandla ukuba ningawubangi umsindo. Sifuna ukumuzwa ukuthi uthini ubaba uMpontshane. [Hon members, please don’t make a noise. We want to hear what Mr Mpontshane is saying.]

Hon members, I am going to allow the hon member, because the IFP was next to give a statement to make use of that time to correct the facts if you think that what we have just been given … because if the information is not factual, then it is misleading. But if it is misleading, then you better take the floor now and address us on the matter. Hon member?

Mr A M MPONTSHANE: Deputy Speaker, the hon member is saying that it was announced when the mayor of Jozini was at that meeting. That is not factually correct.

I come from the area … [Interjections.] … and I personally knew the man who was killed. I know the story surrounding the selling of land to the Swazis. Now …

The DEPUTY SPEAKER: Hon members, some of you may have information that we do not have. Allow some of us who do not have it, to be able to get it, please.

So what you are saying is that it is not factual, that it was not announced at that meeting. Is that what you are saying? Mr A M MPONTSHANE: No, it wasn’t, that is what I’m saying.

Ukuhlanganisa ukushona komntwana wenkosi … umntwana wenkosi lo. INkosi uNyawo yinkosi engingaphansi kwayo mina. Ukuhlanganisa ukushona kwenkosi nomhlangano wamakhansela akulona iqiniso.

Okwesibili, ukuhlanganisa ukushona kwenkosi nokuthi ubemele i-ANC njengekhansela le-ANC akulona iqiniso ngoba ubemele i-ANC kuwodi 8 futhi wehlulwa kulelo wodi, ehlulwa yi-IFP.

IPHINI LIKASOMLOMO: Ususele nemizuzwana eyi-17.

Mnu A M MPONTSHANE: Ngakho-ke akulona iqiniso okushiwo yilungu elisuka kwaNongoma, okuyindawo ecishe ibe ngamakhilomitha ayi-100 uma usuka kuleyo ndawo, ukuthi lizokhuluma lidukise iNdlu ngokufa komntwana wenkosi … (Translation of isiZulu paragraphs follows.)

[I am personally under chief Nyawo. To mix the death of the king and the council’s meeting is incorrect.

Secondly, to mix the death of the king and the fact that he was a ward candidate for the ANC is incorrect, because he was an ANC candidate in ward 8 and he was defeated in that ward by the IFP.

The DEPUTY SPEAKER: You have 17 seconds left.

Therefore, it is incorrect for a member from kwaNongoma, which is approximately 100 kilometres from that place, to come here and mislead the House about the death of a chief’s child.]

The DEPUTY SPEAKER: Well, distance has nothing to do with that. You should know that.

Mr A M MPONTSHANE: It has, because I come from that place. I know what happened. I also know the story about the selling of land in that area. [Interjections.]

                     WATER TO BE USED OPTIMALLY

                        (Member’s Statement)

Ms C B JOHNSON (ANC): Madam Deputy Speaker, the ANC congratulates the Minister of Water Affairs and Forestry on the successful launch of the National Water Week. The event took place yesterday in Plettenberg Bay, under the theme “Water for growth and development”.

This programme is aimed at celebrating our scarce water resources and at creating awareness of the optimal utilisation of water. It is important that water users should utilise water productively, efficiently and responsibly.

The ANC government is committed to ensuring access to clean water for all the people of South Africa, and this programme is indeed part of the broader government programme, which is geared towards ensuring that every South African has access to clean water by 2010. Thank you. [Applause.]

      SKILLS REVOLUTION REQUIRED FOR SA TO REACH 6% GROWTH RATE

                        (Member’s Statement)

Mr C M LOWE (DA): Deputy Speaker, the DA agrees with the Deputy President that a skills revolution is required for South Africa to reach its economic growth target. Unfortunately, the ANC government’s track record on this has been a complete failure, and their new skills initiative simply confirms that the expensive and bureaucratic Seta system and the Expanded Public Works Programme are not delivering.

Lack of skills in South Africa is a key constraint preventing us from growing the economy at a rate of 6% or more. While we agree with government that we must hire retired persons, foreigners and graduates with the necessary skills, we have yet to hear a comprehensive plan from government on improving our education systems or for producing technologically qualified people to fill jobs and help bring South Africa into the technologically advanced 21st century. The Departments of Labour and Education should be working with each other to achieve this, not working against each other.

If South Africa puts emphasis on using the skills its people possess and on creating new skills, there will be opportunities for thousands of people - black and white. But the crude reracialisation in the jobs and skills market is one of the key reasons for the crisis in which we find ourselves.

Government needs to address this problem too if we wish to reach that magic 6%+. Then we too will really endorse the views of the Deputy President. Thank you.

                         PROVISION OF HOUSES


                        (Member’s Statement)

Ms M R MORUTOA (ANC): Madam Deputy Speaker, this is a statement on Mama Mavundla’s house. “There shall be houses, security and comfort.” This is one of the declarations made by South Africans 50 years ago in Kliptown.

Mama Doreen Mavundla, who is 105 years old, has been living in a temporary structure for many years. The ANC-led eThekwini Municipality recently handed Mama Mavundla keys to her very first house at Mount Moria near Durban. We congratulate the ANC government on implementing the Freedom Charter and the fundamental freedoms enshrined in the democratic Constitution. Mama Mavundla today joins millions of other South Africans who have benefited from the efforts to provide the people of our country with basic services, including housing.

Let the struggle to create a better life continue. I thank you, Deputy Speaker. [Applause.]

           CLAIMS OF SEXUAL VIOLENCE IN ANC CAMPS IN EXILE

                        (Member’s Statement)

Ms J A SEMPLE (DA): Madam Deputy Speaker, South African women watch with dismay and outrage as events unfold at the Johannesburg High Court. One reason for the apparent callousness towards the suffering of rape survivors may be found in the revelations of widespread sexual violence in ANC camps in exile, which went unpunished.

The DA is concerned at the ANC’s continued indifference to this matter. A history of sexual abuse, in which victims remain silent because perpetrators go unpunished, will lead to a society in which the abuse of women is seen as inevitable and unremarkable.

The attitudes to gender violence, such as rape, prevalent in the ANC camps in the past, might well explain the hostile attitude of female Zuma supporters towards a rape survivor. Male perpetrators believe that they have a right to sexual favours from women, even when they receive no encouragement. This cannot continue.

The DA Women’s Network calls on the ANC, and especially the ANC Women’s League, to investigate claims of sexual violence within their camps. [Interjections.] They owe it to their female comrades who have kept quiet for so long. [Applause.]

            CRIME SYNDICATES AND DEALING WITH CORRUPTION

                        (Minister’s Response)

The MINISTER OF DEFENCE: Madam Deputy Speaker, I would like to say with regard to the matter of Dihlabeng, that steps are being taken to investigate the issues mentioned in the Auditor-General’s report. It is misleading to suggest that nothing is being done about that matter.

I do want to say, though, that to make an allegation that government has become a network of crime syndicates hellbent on plundering or stealing all our country’s resources is a statement that begs for direct evidence. Any member of society in our country who has evidence that somewhere there exists networks plundering state resources and so on, are welcome free – and, in fact, they are encouraged and we invite them - to provide affidavits and evidence so that government is able to deal with such corruption.

It is not helpful for responsible citizens who know that a crime is being committed somewhere, not to come forward and make themselves available as witnesses so that those who are busy with crime can be brought to book. [Interjections.]

The DEPUTY SPEAKER: Order! Order, hon members!

The MINISTER OF DEFENCE: Now, to come into the House … I’ve said this before: The struggle against crime in this country is not the sole responsibility of one party or another; it’s a collective responsibility of the citizens of our country - black and white, rich and poor.

This is because the police will never be able to uproot corruption unless all of us support the police, by way of providing evidence and standing as witnesses in the courts. The reason I’ve stated this in this House before is that even as we struggled for freedom, as long as members of the public felt that they were disenfranchised, the police could not find and arrest us because the people sympathised with the cause.

I do not believe that the majority of the people of our country sympathise with crime. However, it alarms me when members of this honourable House make statements that they cannot back up with evidence or witnesses, so that we can uproot corruption.

I want a person who is masquerading as a member of the ANC to face evidence from any party, so that we can lock him or her up and free society of this corruption. But don’t make statements here that have no meaning whatsoever. [Time expired.] [Applause.]

                         DEALING WITH CRIME


                        (Minister’s Response)

The MINISTER OF CORRECTIONAL SERVICES: Madam Deputy Speaker, following on what the Minister of Defence said, I want to say this in isiXhosa and isiZulu, because he put it very well in English.

Bab’uMpontshane, nokuba izigebenga bezisuka phi, kwaye nokuba le nkcazo ibifundwa apha ibifundwa ngubani, ohlala kufutshane okanye kude, into ebalulekileyo kukuba sithi thina amapolisa mawaphume azingele eza zigebenga zibulele uVeli, eze nazo enkundleni, zigwetywe, akugqiba eze nazo apha kum ndize kuzivalela. [Kwahlekwa.] Ungakhalaza uye kuma apho uthand’ ukuma khona … (Translation of isiXhosa paragraph follows.)

[Mr Mpontshane, it does not matter where the criminals came from and whether the person who gave the explanation here lives far or nearby, what is important is that the police should go and look for the criminals who killed Veli, bring them to court to be prosecuted, and afterwards bring them to me so that I can ensure their imprisonment. [Laughter.] You can complain as much as you like …]

… it doesn’t matter, they have done wrong; end of the story. [Applause.]

The DEPUTY SPEAKER: Uyabona baba, wena noNgqongqoshe nizoqhubeka ngaphandle, ngale kwalokho ngizonixosha manje. [Sir, you and the Minister are going to continue outside, otherwise I am going to dismiss you.] [Interjections.]

Hon members, please!

Bab’ uMpontshane sengikhulumile kodwa uma ungafuni ukulalela baba, ungahamba sikudedele uyokhuluma ngaphandle noNgqongqoshe ngoba kufanele siqhubeke nomsebenzi namhlanje. [Mr Mpontshane, I have spoken but if you don’t want to listen, you can go and talk outside with the Ministers, because we must continue with work now.] [Laughter.]

Bab’ uNdlovu, you are not part of this equation.

Ngicela ukuthi uthule. [Be quiet, please.] [Laughter.] Hon Minister, you are allowed to continue with your work because I don’t want Mr Mpontshane to join you. [Laughter.]

Ungahlupheki kakhulu baba. Ungamlandeli uNgqongqoshe uyosebenza manje. Nami nje nginguwena bengingeke ngimlandele. Uyambona phela lo muntu ukuthi wakhekile. [Don’t worry, Sir. Don’t follow the Minister; he is going to work now. If I were you, I would not follow him. You can see that he is sturdy.] [Laughter.]

 IMPROVING EDUCATIONAL OPPORTUNITIES AND SUPPORT FOR PRIORITY SKILLS


                        (Minister’s Response)

UNGQONGQOSHE WEZOLIMO NOMHLABA: Ngiyabonga Sekela Somlomo namalungu eNdlu yePhalamende. Ngithi nje angibalule kulokhu okushiwo amalungu amabili e- Democratic Alliance. Okokuqala, kumayelana nokubaluleka kokuthuthukisa amathuba ezemfundo. Ngiyasho ngithi siyavumelana sisonke siwuhulumeni ukuthi lolu hlelo oluphakanyiswe iPhini likaMongameli lokuqalisa uhlelo lwe- Jipsa lubalulekile. Mhlawumbe kufanele sizikhumbuze ukuthi inkinga yabantu yokungaqeqesheki kwabantu bakithi akusiyo into eqale kulo hulumeni.

Yingxaki esiyifice ivele ikhona nesizama ukuyilungisa kanye nokuvula amathuba emfundo kulabo bantu ababengenawo amathuba - abanye babegqilazwe ngenhlupheko, abanye ngokuphoqelelwa ngezilimi abangazifundanga, abanye ngoba abazali bengenazimali kwabenza ukuthi bangakwazi ukuqeqesheka kahle.

Ngiyethemba ukuthi ngeke sime lapha singamalungu onke ale Ndlu, sibe neqholo lokukhomba ngeminwe ngoba siyazi ukuthi uma sikhomba eminye ibheke kithi, ikakhulukazi kithina labo esasikhona lapha kule Ndlu yesishayamthetho ngaphambilini. Kufanele ngabe siyathula singakhulumi kakhulu.

Okwesibili, ngithanda ukusho kudadewethu obekhulumela i-Democratic Alliance ukuthi umthethosisekelo nomgomo we-ANC kucace bha mayelana nenkinga yokudlwengula nokuhlukunyezwa kwabantu besifazane nabantwana.

Angikholwa ukuthi singama lapha ngeqholo lokukhomba ngeminwe futhi sithi lokhu esikubona kwenzeka ngaphandle kwenkundla yamacala eGoli lapho kumanje kuxoxwa khona udaba lokudlwengula oluthinta abanye bale nhlangano kuyisiboniso sokwakwenzeka ngaphandle ezinkambini ze-ANC.

I-ANC ayikaze nangelinye ilanga ikhuthaze ukudlwengulwa kwabantu besifazane. [Ihlombe.] Lapho bekutholakala khona ukudlwengulwa kwabantu besifazane, ngisho ngaphandle, kwakuthathwa izinyathelo ezinqala. Yingakho nanamhlanje ubaba uLekota ongusihlalo we-ANC wakhuluma ekhulumela le nhlangano egxeka isithombe esasisibona ukuqala kwaleli cala ukuthi lokhu esikubona kwenzeka akukhombisi umgomo nomthethosisekeko we-ANC. Ngithanda ukuthi ngisiphendule leso sithombe ngisicacise ngoba akusilo iqiniso ukuthi singama lapha bese sithi lokhu esikubonayo kuyinkomba yokwakwenzeka. [Ihlombe.] (Translation of isiZulu speech follows.)

[The MINISTER FOR AGRICULTURE AND LAND AFFAIRS: Chairperson and Members of Parliament, I wish to respond to what was said by the two members of the Democratic Alliance. The first point is about education development. I think we as a government unanimously agree that the institution of Jipsa is very important. Perhaps we need to remind ourselves that this government did not lead to the start of unemployables.

We found this problem here and we are trying to sort it out. We are opening the doors of learning to those who were denied access to education. Some of these people were languishing in poverty and some were even forced to learn certain languages. Certain parents did not have money; as a result certain people could not be trained.

I just hope that as members of this House we will collectively work together and not point fingers, because remember, as soon as you point a finger at other people, other fingers point at you. I’m afraid that those who were here before need not talk much …

Secondly, I wish to say to my sister who was talking on behalf of the Democratic Alliance that the constitution and the policy of the ANC are very clear as far as the rape and abuse of women and children are concerned.

I do not think it is prudent and wise to stand here at the podium and point fingers at what is happening in the ongoing trial outside the Johannesburg High Court. The rape trial in which an ANC member has been implicated does not reflect what was happening in the ANC camps in exile.

The ANC has never encouraged the raping of women. [Applause.] When a woman had been raped, even outside the ANC camps, necessary steps would be taken. It is for this very reason that the chairperson of the ANC, Mr Lekota, spoke on behalf of the party condemning the ugly picture that we saw during the start of this trial. What 0was happening there does not reflect the constitution of the ANC. I just wish to correct that, because it is not good for people to stand here and claim that what is happening outside the Johannesburg High Court is reflective of a certain past.]

    SCHOOL FEES TO BE SCRAPPED IN POOREST SCHOOLS IN WESTERN CAPE


                        (Minister’s Response)

The DEPUTY MINISTER OF COMMUNICATIONS: Madam Deputy Speaker, recently the MEC for education in the Western Cape, Comrade Cameron Dugmore, announced that fees would be scrapped at 424 of the poorest primary schools in the Western Cape. He also allocated an amount of R29 million to the first phase of this national no fees roll-out plan. This initial roll-out plan, we were told, will benefit 140 000 pupils in the province.

We wish to applaud the efforts of the Western Cape provincial government in executing our promise to the children of South Africa that tomorrow will certainly be better than today, and for demonstrating to the parents of the poorest of the poor that our government, led by the ANC, is indeed committed to implementing our policies that will bring about a better life for all.

This also gives the assurance that the best circumstances for our people will enable them to get out of the poverty of an economic and discriminatory past. We are not only demonstrating that we have a plan as a government, but that we are indeed executing that plan. Thank you. [Applause.]

                   RENEWABLE ENERGY WELCOME IN SA


                        (Minister’s Response)

USEKELA-MPHATHISWA WEZIMBIWA NAMANDLA: Sekela-Somlomo, ndifuna ukuxelela ilungu elibekekileyo, uMnu Greyling, ukuba siyi-ANC siyawaxhasa amandla amatsha kwanamandla ahlaziyiweyo, kwaye siyawafuna kweli lizwe lethu. (Translation of isiXhosa paragraph follows.)

[The DEPUTY MINISTER OF MINERALS AND ENERGY: Madam Deputy Speaker, I would like to tell hon member Greyling that the ANC supports renewable energy and it is definitely needed in our country.]

Internationally, it has been proved that one of the cleanest forms of energy is nuclear energy.

Okwesibini ke, njengokuba siyifuna nje … [Secondly, although we need it …

… we are still doing research on renewable energy and the different forms of renewables. Unfortunately, we have not reached a stage at which …

… singaba namandla ahlaziyiweyo afikelela kwinqanaba lokuba anganezisa iimfuno zeKapa noqoqosho lwaseKapa naseMzantsi Afrika uphela. Ukuba ke umntakwethu unawo, nokuba ngawaphi na amandla angasetyenziselwa oku, nokuba ngacatshulwe emoyeni okanyeni elangeni okanye nakuwuphi na umthombo wamandla ohlaziyekileyo nonokufezekisa iimfuno zoqoqosho lwaseNtshona Koloni, singavuya kakhulu. (Translation of isiXhosa paragraph follows.)

[… we have renewable energy that can satisfy the needs of Cape Town and its economy as well as those of the rest of South Africa. We would welcome any suggestion from my brother, whether it is about solar energy or any other form that is renewable, which could meet the demands of the economy of the Western Cape.]

We’ll definitely welcome that information. Ndiyabulela, Sekela-Somlomo. [Thank you, Deputy Speaker.] [Applause.]

The DEPUTY SPEAKER: There is an opportunity for one more response from a Minister.

          A BETTER LIFE FOR ALL AND THE BUILDING OF HOUSES


                        (Minister’s Response)

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Ms E Thabethe): Thank you, Deputy Speaker. I’ve been raising my hand, but maybe because I’m on this other side …

The DEPUTY SPEAKER: You are taking your time. [Laughter.]

The DEPUTY MINISTER OF TRADE AND INDUSTRY (Ms E Thabethe): I just want to respond to the statement made by the member Morutoa confirming that yes, indeed, the ANC is committed to making sure that a better life for all is achieved. That is why Mrs Mavundla received her house at the age of 105 years. That also confirms what the President said when he opened Parliament this year – when he spoke about the age of hope.

Also, this confirms then that in 1955 when the men and women of this country had the vision that there would be rights for all of us: The right to housing and the right to – you might say … [Inaudible.] This is the reality, because this is what is happening today, and the ANC’s commitment to the people is really being implemented. I hope that many other people will be able to benefit, because building these houses means there will be more jobs and also that the economy is being steered. Thank you very much. [Applause.]

The DEPUTY SPEAKER: Thank you, Deputy Minister. We really apologise for taking time to recognise you.

                         APPROPRIATION BILL

Debate on Vote No 25 – Agriculture – and Vote No 29 – Land Affairs:

The MINISTER FOR AGRICULTURE AND LAND AFFAIRS: Aa! Murangaphanda wa nndu, vhathomphei, Mulangi wa Buthano la Lushaka … [Greetings to the House Chairperson, hon members, Speaker of the National Assembly …]

… Ministers and Deputy Ministers, directors-general and other leaders of the Public Service present here today, heads of departments from provincial departments of agriculture and land affairs as well as land claims commissioners, heads of agricultural public entities, distinguished guests, friends and comrades, I wish to extend a warm welcome to the members of the executive councils responsible for agriculture present in this House today.

Clearly, without you, colleagues, the co-ordination of the activities of the agricultural sector would not have been possible. To our partners, the farmers and farmers’ organisations; leaders of agricultural business, some of whom are represented by their organisations here; members of the agricultural CEO Forum from various industries and agricultural businesses; our local government mayors; some of whom have come back as deployed cadres in the sector of local government - some of them have not taken up their deployment - we would like to say to all of them: Thank you for the role that you have shared with us in ensuring that we revive our rural economy.

To our female farmers of the year and many other women in the sector who have always reminded us that this is a section in which both women and men make a difference to our agricultural economy and food security; to the young farmers who are our future; to the educators in the agricultural colleges and universities who cultivate the necessary human resources critical in supporting agrarian and land reform; to the many traditional leaders who have given user rights to land for many people in communal areas, in order for them to continue to get sustenance as they continue to face the challenges of fighting hunger and poverty; to the landless communities whose life in land is still insecure; to the farmworkers and workers in the food and agricultural industries; and, to the nongovernmental organisations involved in the land and agrarian sector, I want to say to all of you that our promise of changing this skewed ownership patterns of land in our country is being realised each day, as we deliver the land through the variety of programmes that your government has put in place.

Today it is no longer a dream that it is possible to conclude our restitution programme by 2008. To our land claims commissioners and their staff, I want to say: Thank you for your efforts.

Ningadinwa nangomuso. [Thank you, I hope you will do it again.]

To the farmers and landowners who have worked with us to ensure that we deal with this programme efficiently and faster, I also want to say thank you for their co-operation.

Abaningi abantu ababefake iziphakamiso zamabanga omhlaba bayisikhumbuzo kithi sokuthi impela ithemba alibulali. Ngikhuluma nje sesixazulule izicelo ezibalelwa ezinkulungwaneni ezingama-71 589. Sekusele nje kuphela eziyingcosana kulezo ezibalelwa ezinkulungwaneni ezingama-79000 ezazifakiwe ekupheleni kukaNovemba 1998. Yingakho sineqholo lokusho sithi impela izolo alifani nanamuhla nenamuhla aliyukufana nengomuso. Konke lokhu esingakubalula njengempumelelo kwenziwe ukusebenzisana nokubambisana. (Translation of isiZulu paragraph follows.)

[Most of the people who forwarded land claims are reminders to us that patience does pay. As I’m talking, we have settled 71 589 applications. We are left with a few applications totalling 79 000 that were made in 1998. That is why we are proud to say that yesterday is not like today and today will not be like tomorrow. This progress is the result of working together and co-operation.]

It is our hope that the new partnership and commitment we build prior and during the Land Summit will act as a reminder that ours is and must be a collective effort that seeks to bring about equity and prosperity for all. In his state of the nation address, our President spoke about the age of hope that our nation and country is now going through. Echoing the same sentiments, the Minister of Finance, Mr Trevor Manuel, cited Nhlanhlayenkosi Mhlungu who stated that, I quote:

“Inala ifikile asivuneni.” [Abundance is here. Let us reap.]

In Tshivenda they will say …

“Ndi tshifhinga tsha khano khulu – kha ri kane.” [It is the time of great harvest. Let us reap.]

I submit Vote Nos 25 and 26 to this House with a statement by more than 8 000 delegates to our Land Summit of July 2005 held in Johannesburg who proclaimed that, and I quote: “Genuine progress gives us hope for the future.” The progress that these delegates were referring to was the economic growth and poverty alleviation in our society.

The hope of millions of our rural people of future growth and poverty alleviation in agriculture and the rural economy is based on a complex and complicated mixture of economic, social and cultural factors. It is for this reason that the issue of land access and use continues to be a limiting factor for others to actively participate in the agricultural economy.

The Land Summit was a critical forum for the evaluation of our policies and programmes. Some of the concerns that were raised are as follows: Firstly, that the state has not used effectively all the instruments provided for it in the Constitution, in particular, expropriation in the public interest; secondly, that the exclusive use of the willing-buyer, willing-seller approach has had a limiting effect and therefore needs a review; thirdly, that the challenge of settling labour tenure security remains a legacy that none of us sitting in this very Chamber would be proud of; fourthly, that the nonlimitations on foreign land ownership have exposed the challenge in terms of the very programme of land reform as an instrument of achieving equity; fifthly, they said that the lack of alignment amongst the spheres of government and departments did not ensure sustainability of projects in which land had been transferred to beneficiaries; and, lastly, they said that the length of time that it took to finish a project negatively affected those who were ready and willing to work with government in land delivery.

It was through the thorough examination of these challenges that the Land Summit concluded that working as partners, we, as government, should from our side, review the willing-buyer, willing-seller principle; look at a combination acquisition strategy which may mean proactive land acquisition where possible; and create local structures, which include local government representatives, farmers, farmworkers, labour tenants and community organisations, so that they together can be able to identify the land needs in their localities and what the best way is of ensuring that we can address these challenges.

The other matter that they raised was that we needed to fast-track the implementation of the Communal Land Rights Act, so that indeed we could improve the capacity of our rural producers to become economically viable and move beyond being subsistence farmers. They also charged us with implementing fully the mechanisms, as articulated by our Constitution. They also indicated that we needed, as government, to improve our alignment amongst government departments and the spheres of government, and that we should ensure that the work undertaken on the investigation of foreign land ownership should inform us of an appropriate policy on how best we can manage this issue.

Indeed, the question of land in South Africa is one of a paradigm of paradoxes. Whilst the colonialists and the apartheid architects used land conquest and land deprivation as a strategic tool for suppression and subjugation, the new democratic state in this country uses land and agrarian reform as a catalyst and foundation for economic development, the eradication of poverty and economic growth in order to improve the quality of life of all South Africans.

The Land Affairs budget reflects that we will do some of these things that the summit recommended we do. We will be implementing our proactive land acquisition strategy. This strategy will embrace two approaches: A needs- based approach and a supply-led mechanism, focusing on the state as the lead driver in land redistribution, rather than the current beneficiary redistribution programme.

The state will proactively target land and match this with demand or on a need-for-land basis, obviously working with the local associations and the local government. This strategy will be piloted at sites within the agricultural development corridors, areas with a majority of labour tenants or where there are great possibilities for agricultural growth.

In the same breath, we have to deal with cases of human settlement, such as the need for land in the East London area and in Ekhurhuleni where, in collaboration with the Department of Housing, we will need to work together to remove the challenges of land hunger for housing development.

The first phase of the implementation of the Communal Land Rights Act is already under way. We have worked with the University of KwaZulu-Natal in the development of the curriculum of land officers, who will be critical to the administration of the land after it is transferred to communities. These individuals will be selected by the communities themselves so that we can ensure that they remain accountable to them.

Towards the end of 2004 we visited the Houses of Traditional Leaders in the Eastern Cape and Mpumalanga, with the aim of discussing the implementation of the legislation. During these visits we agreed on a follow-up strategy to go to the regional areas and working particularly with the traditional leaders at regional level, so that we collectively can appreciate the challenges that we will face in the implementation of this legislation, and so that we collectively, as traditional leaders and communities, can also manage tensions that are likely to arise when the issues emerge in terms of the transfer of land, particularly with regard to boundaries.

Delegates to the Land Summit were conscious that land and agricultural development should be seen as one programme rather than two separate ones. As we deliver the Agriculture Vote, we want to reflect on the contribution of agriculture to our economy. It is by now almost common knowledge that every R100 that is invested in agriculture generates more jobs and income redistribution than any other sector of the economy. Yet the share of the sector in terms of the GDP has fallen consistently over the past five years to the current level of about 3,5%. Agriculture, in terms of employment, despite the fact that this has also been in decline, is still a major employer because its share of the GDP is 10,1% of the total employment in the country.

Furthermore, more than 3 million people or 52% of households that live below the poverty line in our entire country live in rural areas, many of which depend on agriculture and agriculture-related sectors. These people also share part of that hope of our people in the future growth of the sector and poverty eradication. This means that the hope of these millions of people relates to very complex challenges and opportunities that must be addressed.

A recent study by the Monitor Group, which we asked to work with us as the Department of Agriculture and Land Affairs, to identify what we needed to do to indeed contribute towards 6% growth, indicated that the growth of approximately R68 billion, and its attendant employment and investment- creation opportunities that took place in agriculture in the recent past, was in fact limited not only in the primary parts of the sector but, most importantly, that it was also generated in the value-adding chains of downstream agriculture-related industries.

This is imperative, because the fundamental objective of this government in agriculture in the rural economy is to reduce the differences that exist – the differences between the urban and rural areas - to a simple question of choice that would be exercised by people where, otherwise, the quality of life between the rural and urban areas would largely be similar in the not so distant future.

Agriculture-related industries have shown faster growth than the primary sector. The windfall and the effect of the 2003 producer price index, which was primarily driven by maize prices, has also allowed our farmers to reduce their debt-to-equity ratio, which moved from over 30% in the 2001 season to just about 25% currently.

Unfortunately, when this windfall occurred, the consumer price index also rose, but the government was quick to implement food security intervention strategies to protect the vulnerable and the insecure, as far as food was concerned. Although the net farm income seems to have dropped on an annual basis, since 2002-03 until the present moment, the average net farm income increased from R11 billion to R7 billion over the last five years, hence the determination of government to embark on a new trajectory as embodied in the Accelerated and Shared Growth Initiative for South Africa (Asgisa).

It is clear to us that we cannot achieve the gains we are pursuing in the agricultural sector without galvanising our resources to address the organisation and capacity of our government institutions, whilst strengthening the partnerships we have established through the process of developing the sector plan in November 2001.

We are all familiar with the challenges that the ostrich and poultry industries have faced over the past year regarding the threat of avian flu. This challenge is not unique to South Africa, as the poultry industry internationally is under pressure with the weakening of prices, owing to declining demand as a result of the spread of the avian influenza H5N1 strain.

We are also aware of the decrease in the harvest of grapes attributed to the continual drought and heat conditions that have affected the wine harvest negatively. The 2006 wine grape harvest is estimated at over one million tons, approximately 2% less than the estimate of January 2006.

Climatic changes, as observed in recent times, are resulting in periodic droughts interspersed with flooding, causing a decline in the yields in the different commodities. A drought management plan in line with the Disaster Management Act was approved and is being gazetted for public comment.

This plan responds to disasters related to drought that affect small farmers, and it makes provisions for animal feed and water. The declaration of 2006 as the international year to combat land degradation and desertification will assist us in galvanising our resources to combat the effects of climatic change in our communities.

Umnotho wakuleli usukhulile. [The economy of this country has grown.]

Our nation is going through the major challenge of uplifting millions of our people who are below the poverty line. They need housing, food, health care, education and employment that will provide a better quality of life. It is this hope that our government and, in particular, the Departments of Agriculture and Land Affairs must preserve.

It is also the departments’ objective to ensure that we as these departments recommit and rededicate our efforts to the upliftment and support our people, particularly those confined to the periphery of economic activity, those whose hopes are vested in the land and other natural resources – and of course, those whose hopes are at the heart of the sector strategy.

The question is therefore: How then have we fared to date and what have been some of the milestones since the advent of democracy? In making this assessment, I would like to remind this House of the words of the hon member Kraai van Niekerk in his first budget speech in the National Assembly on Tuesday, 13 September 2004:

It is widely acknowledged that agriculture is the cornerstone of any development of any developing country. This also applies to South Africa. In fact, the growth of the South African economy over the past year or so can mainly be attributed to agriculture.

It may be 11 years ago, hon Van Niekerk, when you said those words, but I am confident that they are as true today as they were then. We can cite examples, more of what we have done already in order to affirm that the role of the agricultural sector in the economy remains critical.

Conscious of the importance of the role of this sector as a foundation of our economy and rural development in 2001, government identified agriculture as part of microeconomic reform, as one of the growth sectors of our economy. Our intervention as government in this sector, either in the opening of market access opportunities beyond our traditional markets or in strengthening our veterinary support in order to continually ensure that our livestock industry remains economically viable, has been, among other things, an indication that acknowledges the role this sector plays in our own economy.

In this instance I would like to refer to the grain industry especially maize, which is produced for domestic consumption, particularly with regard to food security. The grain industry is also a subsector that contributes to our animal feed industry and to our foreign exchange through exports. The concern over the price of maize has had most of us worried over the past two years.

However, in the true tradition of “’n boer maak ’n plan”, we have seen the expansion of feed lots as another way of ensuring that the absorption of the grain surplus actually enters this area of animal or livestock development. This resulted in the red meat and the poultry industries delivering impressive results of 11,5% and 1,2% added margins for 2004-05, as compared to the same period in the previous year of 2003-04.

This concern over the price of maize should, however, not be taken lightly, particularly with regard to the change in consumption patterns of our society, as indicated by the study done by Grain SA and the need for better crop forecasting models and techniques. We hope that the current efforts by the industry, the Maize Trust and the Department of Agriculture to develop better forecasting methods, will provide us with a better tool to exploit this going forward.

The challenges exist, but opportunities also exist. We are grateful for the efforts of our partners in the sector, particularly those who have come forward to provide both participation and skills. The norms and standards for extension and agricultural advisory services will enable national programmes, and particularly provincial departments of agriculture, to focus on capacity for extension officers to perform their work effectively by indicating the farmer-extension-officer ratio for different farm areas and sizes, as well as the farming systems. Human resources, skills development and outlining the competencies and skills required of an extension agent are also critical.

Managing mentorships, particularly for extension officers and farmer to farmer, where possible, is again important. Here, I am referring to organisations such as the newly established chief executive officer’s forum. This is a forum through which, as the Department of Agriculture led by the director-general, we have brought together all the CEOs of agricultural businesses in South Africa so that we can share collective wisdom on how we can manage and govern this sector effectively; and how we can bring the experience that they have had over many years to bear as we continue to support agricultural development in our country. I would also like to refer to the Maize Trust and the gestures from AgriSA, as articulated by our newly elected chairperson Neels Ferreira, whom we wish Godspeed in doing his job. We are also encouraged by the ostrich fraternity, with whom we as the Department of Agriculture, have interacted. They have indicated to us their willingness to assist in broadening access and providing for the empowerment of those historically disadvantaged individuals.

The overview I have just given and numerous other indicators not mentioned here tend to support our assertion that the state of agriculture in the country is good, even though the benefits, I must say, may not be shared by all, but that is something that all of us have to work at.

Considerations coming out of the Land Summit and our own commitments and achievements indicate that there is reason for agriculture to celebrate the age of hope. Within the sector strategy and together with sector partners, we are all beginning to feel both the opportunities and challenges of deregulation and the emergence of the competitiveness of our sector.

In summary of what preceded, opportunities exist within new interventions, such as in biofuels and the gold industry. For this reason it has become necessary for us as a department to position ourselves, as well as our provincial departments, so as to ensure that we improve our animal health regulatory system and that we restructure our industry through the AgriBEE intervention and other empowerment tools to ensure that, indeed, we can all share in this age of hope.

I would like to report to this House that the programme that was launched last year on assisting farmers, small farmers in particular, through Mafisa – the Micro Agricultural Finance Schemes of SA - has been launched in a number of provinces. We will continue to roll out to those provinces in which we have not yet been able to launch.

But it is also necessary to say to this House that the Comprehensive Agricultural Support Programme, which was an intervention to ensure that we could have targeted support for farmers, has continued. Unfortunately, we continue to face challenges of spending. At yesterday’s Minmec meeting and today when we had political discussions among members of the executive councils and their senior officials, we came up with a strategy of how to deal with the bottlenecks that were there so that we could truly ensure that these programmes, identified as sorely in need of support, could indeed meet their objectives.

Issues of food security have never been as important as they are today. Although the plight of the poor and malnourished has improved during the first decade of our democracy, it has also been recognised that a more integrated approach is needed to ensure sustainable results. To respond to these challenges, the Cabinet endorsed the Integrated Food Security and Nutrition Strategy as a priority for the social cluster.

The Integrated Food Security and Nutrition Programme further recognises, and is aligned to, the broad regional food security framework highlighted within the Regional Indicative Strategic Development Plan of SADC. It is within this framework that the government of South Africa has responded in the past three years to the humanitarian appeal by the World Food Programme for food emergency relief operations in the SADC region.

Agricultural development thus becomes critical in providing vulnerable communities with the hope for a better life, free from poverty, hunger and unemployment. It will be done, and we will continue to do what we have been doing, to ensure that we can assist those communities that are vulnerable and particularly those that are still dependent on subsistence farmers for their livelihood.

Here I would like here to applaud my colleagues, the MECs for agriculture in various provinces, who have created province-specific programmes within the Integrated Food Security Programme. We have Siyazondla in the Eastern Cape. Some of you may be aware that at the Mbashe Municipality we have been able to target each and every household within the 12 wards of the municipality, with the aim of ensuring that no household’s land is untilled and that no household goes to bed without food. [Applause.]

We intervened by ensuring that those communities in those 12 wards would share in the implements that have been so acquired, will each receive seeds and will each be assisted with mechanisation using some of those power hoes that we acquired from Agrid. These are some of the interventions that we use ukuxosha indlala [to fight poverty].

The Siyavuna programme in KwaZulu-Natal and other programmes such as the revitalisation of smallholder irrigation schemes, Resis, in Limpopo are but some of the ways in which, together with the provincial departments of agriculture, we are attacking the challenge of poverty in our country.

It is clear to me that whatever we want to do, it cannot be done if we do not, at the same time, attend to the governance of the sector. It is for this reason that I would want to assure the Members of Parliament that in our meeting with the MECs for agriculture, we agreed that we needed to do something to ensure that we implemented the Intergovernmental Relations Framework Act so that we do have a better way of managing our sector. It is our belief that the success of the land and agrarian sector will occur when we also improve the capacity of our officials, both in terms of skills and knowledge, so that they can truly be advisers to our people. I can highlight a number of challenges and a number of achievements that we have made over the years, but I think today there is less time to do so. I am sure that these Members of Parliament, together with our people, particularly those of our partners in the industry and our farmers, will continue to give you hope for the future - that in agriculture we can create a better foundation for our economic growth as a country. I thank you. [Applause.]

Mrs D G NHLENGETHWA: Chairperson, hon Ministers, hon members, MECs from different provinces, department officials, we have already entered the second decade of freedom and this financial year’s budget is yet another tool through which we continue to advance the objectives of the national democratic revolution, the NDR.

The stated aim of the budget is a fundamental pillar of the ANC five-year programme and manifesto, which is to build a better life for all.

Namhlanje kungcono akufani nayizolo lapho abantu bakithi bekuyizigqila zokusebenza amapulazi kuthiwa bazini ngokuba ngabanini mapulazi. [Today is better than yesterday when our fellow countrymen were slaves and worked on farms where it was said that they do not have the capabilities to be farm owners.]

Our theme is to move forward decisively towards the eradication of poverty and underdevelopment, taking care of the process of social cohesion and building a social security net. The preamble to Act 108 of 1996 states clearly that:

We, the people of South Africa, Recognise the injustices of our past; Honour those who suffered for justice and freedom in our land; Respect those who have worked to build and develop our country; and Believe that South Africa belongs to all who live in it, united in our diversity. We therefore, through our freely elected representatives, adopt this Constitution as the supreme law of the Republic so as to –

Heal the divisions of the past and establish a society based on democratic values, social justice and fundamental human rights;

 ... Improve the quality of life of all citizens and free the potential
 of each person.

Section 25(1) of the Constitution established the framework for the implementation of land reform, as it states, “No one may be deprived of property except in terms of law of general application, and no law may permit arbitrary deprivation of property.”

Sihlalo, ngitawuphuma ngicaphune kancane kuloMtsetfosisekelo welive njengoba ngifuna, kuze ngisite laba labangafuni kubuyisela umhlaba kubanikati bawo, kutsi bawuvisise kahle lomtsetfo.

Ukhona lomtsetfo sawubeka kuyo yona leNdlu yeSishayamtsetfo. Ukhona-ke futsi lomtsetfo, unematinyo futsi uyaluma. Nasibona kutsi, awulumi kahle sitawengeta lamatinyo, alume kuvakale endvodzeni. [Tandla.]

Kantsi futsi sigaba 25(2) (a) na (b) ukhuluma ngekutsatfwa kwemihlaba. Ukhona umtsetfo waloko, futsi sitawusebentisa. Kuyabonakala kutsi kukhona bontsamolukhuni labacinile ekusombululeni leyonkinga yekutsi umhlaba ubuyiselwe ebantfwini. UMhlon Abram utawukhulama kabanti ngawo lowo mtsetfo. (Translation of Siswati paragraphs follows.)

[Chairperson, I will deviate and quote from the Constitution of the land because I want to help those, who do not want to give land back to the rightful owners, to understand this legislation.

The legislation is there; we passed it in the National Assembly. The legislation is there, it has teeth, and it bites. If we realise that it does not bite properly, we will add the teeth so that one can feel the pain. [Applause.]

And also section 25(2)(a) and (b) talks about expropriation. There is legislation with regard to that, and we will use it. It is clear that there are those who are stubborn and who make it difficult to find a solution to the problem of giving land back to the people. The hon Abram will elaborate on that legislation.]

Minister, allow me also to join you in adding to the recommendations that came out of the indaba on land agrarian reform. This summit was attended by a diverse range of stakeholders who came from all walks of life. The summit put land and agrarian reform at the centre stage of national discussion. The aim of the summit was to review the performance of South African land agrarian reform after 10 years of its implementation, by identifying challenges that have led to its slow place, given the target set in the Reconstruction and Development Programme.

One of the challenges identified was the slow pace of delivery. Also, high land prices have affected the pace of land delivery. There has been a 20% increase in land prices in the past two years. Integrated delivery and commitments made by municipalities and other government departments have not yet been realised. Stepping up capacity-building and technical advice to land reform beneficiaries is still a daunting task.

I mention these challenges, hon Minister, hon members, all of us, precisely because I hope we have taken these marching orders very seriously - and also from the President in his state of the nation address, as well as from the land summits we had in July.

In his state of the nation address on 3 February 2006, the President stated clearly that land reform and land restitution, which the hon Dlali will be talking about, were critical in the transformation of our society, and he also referred to the reviewing of the willing-seller, willing-buyer policy, that the Minister alluded to and something that the hon Abram will also be talking about.

Also, one of our monitoring strategies as a committee is to ensure that the land redistribution programme is aligned to the provincial growth and integrated development plans - the IDPs - of municipalities, and to attend to the proper use of funds that have been made available for the productive utilisation of land.

This directive has a very significant impact on the budget of Land Affairs. As of now, more resources must be made available to attain the given targets. As we all know, the total landmass in South Africa is 122 million hectares. Of this total, 82 million hectares constitute prime white-owned agricultural land. So this means that 22 million hectares is white-owned agricultural land that is expected to be delivered by 2014.

Kusho kwekutsi kulomnyakatimali lophela mhlaka 31 March 2006, siphumelele kunikela umhlaba loti 3,7 tema-hektha kubantfu bakitsi. [It means that in this financial year that ends on 31 March we have succeeded in giving 3,7 hectares of land to our people.]

Act 22 of 1994, as amended, states clearly that the role of the Land Commission is to provide for victims who have been dispossessed of land rights as a result of racially discriminatory laws and practices that took place after 19 June 1913.

Sihlalo, loku kusiniketa ligunya lekutsi sisondzele kulesikhatsi lesitibekele sona kumele sinikele ngemhlaba longemahektha lati 3,7 kuleminyaka lemitsatfu letako.

Sihlalo, kunanatelela loku lesengikushito, Likomidi Letekulima Netemhlaba livumelene Nelitiko Letekulima Netemhlaba … [Kuhlaba lulwimi.] (Translation of Siswati paragraphs follows.)

[Chairperson, this gives us the right to meet the deadline that we have set for ourselves. We must give 3,7 hectares of land in the next three years.

Chairperson, to add to what I have said, the Portfolio Committee on Agriculture and Land Affairs have come to an agreement with the National Department of Agriculture and Land Affairs … [Interjections.]]

Chairperson, I can’t concentrate. [Interjections.] This is my maiden speech as the chairperson of the agriculture committee.

The HOUSE CHAIRPERSON (Mrs C-S Botha): Members!

Mrs D G NHLENGETHWA: Please behave yourself. [Interjections.]

Kusukela kulomnyaka lesikuwo litiko litawuta kulelikomidi litesitjela kutsi- ngelilanga letabiwotimali tematiko satsi sitawenta loku naloku. Natsi njengelikomodi sitabe sesiyababuta kutsi senikwentile yini? Nelitiko litawusho nalikwentile kutsi yebo sikwentile, kodvwa sihlangabetana nanati tinkinga. Sitabe sesiyasho kusti asishintjeni sibuke ngalelinye liso sindzawonye kuze sikwati kuphumelela.

Sivumelene kutsi loku kutawukwenteka njalo ngekota yemnyaka, hhayi kutsi sime kuze kufike lomunye umnyakatimali kube kungikhona sitawubuta kutsi nanitsite nitakwenta kutsi nekutsi, nikwentile yini? Sitawusho kutsi nente kahle la, anikenti kahle la, lapha-ke yenyusani emasokisi, nalapha nicinise tintsambo teticatfulo tenu. (Translation of Siswati paragraphs follows.)

[Starting from this year, the department will come to this committee to tell us that on the day of the departmental budget we said we would do this and that. We, as a committee, will then ask if you have done it. The department will account and explain the challenges they are faced with. Together we will then look for an alternative that will make us successful.

We agreed that this would happen every quarter of the year, and that you should not wait for another financial year to account on what you did and did not do. We shall compliment the work that has been done and advise on what is to be improved on.]

This exercise will improve our monitoring strategies in meeting our targets as expected, as the theme of Land Affairs is “A partnership to fast-track land reform - a new trajectory towards 2014”, which is a true reflection of the goals it intends to achieve.

Between 2002-03 and 2005-06 overall expenditure grew significantly from R1,1 billion to R3,9 billion at an average annual rate of 52,7% with the largest rate in the 2004-05 financial year. This increase is being driven by the acceleration of delivery in land reform programmes, in particular the land restitution programme.

The land restitution programme has an expenditure increase of R394,3 million to R2,7 billion in 2005-06 at an average rate of 90%. This spending is expected to decrease from R3,4 billion in 2006 to R2,5 billion in the 2008-09 financial year, owing to the phasing out of some other programmes in 2009-10.

The Accelerated and Shared Growth Initiative for South Africa, Asgisa, that the hon Nkuna and the hon Thomson will be talking about, has identified agriculture as one of the sectors to be developed for accelerated growth.

The hon Thomson will be talking about addressing the challenges of poverty, underdevelopment and marginalisation confronting those in the second economy. The department has come up with a programme that will provide assistance to emerging farmers, namely the Comprehensive Agricultural Support Programme, CASP. The aim of this initiative is to provide postsettlement support to targeted beneficiaries of land reform and other producers who acquired land through private means.

The total allocation to the Department of Agriculture for the 2006-07 financial year is R1,95 billion, which represents a decrease of 2% from the previous financial year, which was R1,99 billion.

For the food, animal health and disaster management subprogramme, the issue of the shortage of veterinary scientists and other skilled personnel has been a challenge. How is this going to be addressed if the budget is cut by more than half - a 51% cut? I think we need to revise this for the benefit of our people.

Another challenge is infrastructure development. As this is one of our priorities, one would have expected a significant increase in engineering as there is a shortage of energy and resource use, and there is the management subprogramme that facilitates the development of agricultural infrastructure and deals with land care programmes and the revitalisation of irrigation schemes. But with the small increase, we will find it difficult to address these issues effectively.

Another challenge is that the department has a target of training 200 agricultural students by the end of 2007. Is this amount of students going to be enough to meet the increasing demand for research and advisory support to emerging farmers? Are there enough benefits to maintain them within the sector? Is the sector attractive enough to lure more scientists to the sector? We need more, hon Minister of Finance.

In conclusion, on behalf of the ANC I would like to extend my heartfelt condolences to the family in the North West that, owing to unforeseen circumstances – floods - lost a newborn baby. The parents were trapped in the house and unable to get help.

I would also like to thank the North West provincial government for their intervention in distributing food parcels to the affected communities. They showed one of the ANC characteristics, which is that the ANC really cares. [Applause.] The ANC supports both Budget Vote 25 and Budget Vote 29. I thank you. [Applause.]

Dr A I VAN NIEKERK: Hon Chair, hon Minister, colleagues, I’d like to thank the Minister for her well-prepared speech and for the fact that she acknowledged the importance of agriculture. I think it has to be emphasised because people sometimes forget the important role it plays.

In the seven minutes at my disposal I will, in the true tradition of the opposition, embark on a few critical areas related to agriculture.

Minister, the main problem with agriculture in South Africa at present is that, on the one hand, macroeconomic conditions are exerting pressure on the profit margin of agriculture and, in doing so, limit the opportunities in agriculture. On the other hand, there is a political drive and need to establish more entrepreneurs on a smaller economic scale, and to increase job opportunities in agriculture. These are contradicting tendencies. This is the crux of the problem in South Africa, at the moment.

I would like to point out some of the consequences of the economic realities and government policies of the day in the agricultural field in this regard. It is an economic reality that when profit margins come under pressure, costs are cut, labour forces shrink and farming units tend to increase in size.

Last year the profit margin in agriculture decreased by 22% and debt increased by 11% - a tendency that has continued over the past five years. The logical reaction to these economic realities over the past number of years in agriculture is that 400 000 job opportunities have been lost. They decreased from, basically, 1 million to at least 600 000. Minimum wages in this regard did not help to stem the job losses.

The economic pressure and challenges also caused a number of commercial farmers to decrease over the past 10 years, from approximately 60 000 to 40 000. However, these farmers still manage the same number of farms, which means that the unit size per surviving farmer has increased. It is against this direction that the commercial farming sector is moving, which is to increase economic units. The restitution and reform policy is moving in the opposite direction, namely to establish more farmers or more people on smaller units in agriculture.

These new farmers do not have the experience, knowledge and funds to survive, yet they have to play on the same economic field and experience the same pressures, increasing labour costs and diminishing profit margins. The final result of these conditions is reflected in the many failures of well-intended restitution and reform projects in South Africa. A lot of attention in this regard is required from you, Minister.

The problem of the day for the Minister is even more complicated. To assist the Minister, she has two large Ministries available, namely Agriculture and Land Affairs. Both departments have good, qualified staff and excel in reorganisation and restructuring. They are very prominent on the talk shows, new planning and new schemes, but fail dismally on the practical side on many fronts to implement their own suggestions.

The responsibility to have functional departments is the responsibility of the Minister and the two directors-general. Why, Minister – and I can ask many questions – have extension services just gone out the window? Only one or two provinces have made some efforts. Why, Minister, on the restitution side, do officials act one-sidedly and deal with problems in half measures? Why, Minister, are there extensive delays, lack of communication and poor negotiations between the Department of Land Affairs and commercial farmers? Why, Minister, the large delays in dealing with permits and the subdivision of agricultural land?

Het u kennis geneem, Minister, van die welwillendheid ten opsigte van grondhervorming en die bereidwilligheid van boere om in dié proses te help? Hierdie welwillendheid is besig om te vervaag, as gevolg van die arrogante optrede van baie van die amptenare van die Departement van Grondsake.

Die uitdaging is groot, naamlik om die twee departmente van Landbou en Grondsake te aktiveer, nie net om verskonings aan te bied nie, maar om oplossings te vind vir wat in Suid-Afrika werkbaar is. Dit help nie om elke keer te verwys na voorbeelde van lande met sosialistiese beleide en dan te verwag dat dit klinkklaar net so in Suid-Afrika se moeilike klimaatsomstandighede en vryemarkstoestande sal werk nie.

Om grondhervorming te laat slaag, moet die kundigheid van die bestaande wit en swart kommersiële boere betrek word. Tans word hulle hoofsaaklik geïgnoreer. Gevolglik slaag bitter min projekte. Daar is baie redes vir dié mislukkings, maar die gebrek aan kundigheid by nuwe boere oor hoe om die grond en die landbou-ekonomie te bestuur, is sekerlik die belangrikste.

Mense wat nog nooit geboer het nie, en deur restitusie op plase beland, word gou ontnugter deur realiteite. Té veel mense op té min grond was nog altyd ‘n probleem. Daar kan nie verwag word dat ‘n plaas waarop een eienaar ‘n bestaan kon maak, skielik in staat sal wees om ‘n groot groep nuwe eienaars - wat geen ervaring het nie; nie genoeg fondse beskikbaar het nie en feitlik geen begeleidende voorligting ontvang nie - suksesvol ekonomies te laat voortbestaan nie.

Hierdie is die reël en nie die uitsondering nie in feitlik al die hervormingsprojekte. Kyk maar na die jongste Sondagkoerant, Minister, die Rapport, waarin geskryf is oor ‘n plaas Whitehall in Tzaneen wat in 1999 ‘n ekonomiese plaas was en oorgedra is aan 144 nuwe eienaars. Hulle het drome gedroom en opgewonde die nuwe plaas beset. Dit het ‘n nagmerrie geword. Vandag is al die pompe stukkend, die kabels is weg, die pype is opgesaag, en meeste van die bome dood. Feitlik al die mense is weg van die plaas en bevind hulle weer in plakkerskampe. (Translation of Afrikaans paragraphs follows.)

[Minister, have you noticed the goodwill regarding land restitution and the farmers’ willingness to assist in this process? This goodwill is slowly fading as a result of the arrogant conduct of many officials of the Department of Land Affairs.

The big challenge is to get the two departments of Agriculture and Land Affairs going and not just to offer excuses, but rather to find solutions that could be implemented in South Africa. It does not help to refer to examples of countries with socialist policies all the time and then to have the expectation that it will work in South Africa’s difficult climate and free market conditions without any problems.

In order for land restitution to be successful, the expertise of existing white and black commercial farmers should be utilised. At the moment they are being ignored for the most part. The result is that very few projects are successful. There are many reasons for these failures, but the lack of expertise of the new farmers on how to manage the land and agricultural economy is without a doubt the most important.

People with no farming experience, who have ended up on farms through restitution, are quickly disillusioned by the realities. Too many people on too little land have always been a problem. One cannot expect a farm where one owner could make a living suddenly to be capable economically to allow a large group of new owners with no experience, not enough funds available, and virtually no related guidance to be successful in surviving economically.

As a matter of fact, in all the restitution projects this is the rule and not the exception. Minister, just take a look at the Sunday newspaper of last week, the Rapport, about a farm, Whitehall in Tzaneen, that was an economically viable farm in 1999 and transferred to 144 new owners. They had big dreams and occupied the new farm with great excitement. It became a nightmare. At the moment all the pumps are broken, the cables are missing, the pipes are cut up, and most of the trees have died. Virtually all the people have left the farm and are finding themselves in squatter camps again.]

Through disastrous planning the dreams of scores of people have been destroyed through the neglect on the part of national and provincial government departments in this regard.

Dié is maar enkele voorbeelde van letterlik honderde plase in elke provinsie. Die erns van die probleem is groot, as in ag geneem word dat 68% van die kommersiële landbougrond in Limpopo en selfs Mpumalanga onderhewig is aan restitusie-eise, en dié tendens duur voort. Kan u dink wat met die ekonomie van die landbou gaan gebeur?

Die oplossing lê daarin om die meer gevestigde boere in Suid-Afrika te betrek. Hierdie boere het die kundigheid en hul leiers bied op kongres na kongres hul samewerking en kundigheid in dié verband aan. Maar, keer op keer ignoreer die Minister en die departemente dié aanbod en skryf juis die mislukkings toe aan bestaande boere se onbetrokkenheid. (Translation of Afrikaans paragraphs follows.)

[These are but a few examples of literally hundreds of farms, in every province. The gravity of the problem is enormous if one takes into consideration that 68% of the commercial agricultural land in Limpopo, and also Mpumalanga, is subjected to restitution claims, and this tendency is continuing. Can you imagine what is going to happen to the agricultural economy?

The solution lies in getting the more established farmers in South Africa involved. These farmers have the expertise, and their leaders have offered their co-operation and expertise in this regard from the one congress to the next. But the Minister and the department ignore this offer time after time and attribute the failures in particular to the lack of involvement of existing farmers.] Minister, you are busy squandering the goodwill of the large majority of commercial farmers who want to help and have the expertise to transform the reform and restitution actions into a success. Baie dankie. [Thank you.] [Time expired.] [Applause.]

Mr D M DLALI: Chairperson, Ministers, Deputy Ministers, hon members, as we debate this Budget Vote today, the principles of the people’s document are more relevant than ever in that the land shall be shared among those who work it. There shall be equitable access to the land of this country, so says the Constitution of the Republic of South Africa.

Now, since we all embrace and hold the Constitution in high esteem, the question that we need to ask ourselves in this Parliament is: How far have we gone in terms of that equitable redistribution of our land? How soon are we going to realise that we are still very far from the realisation of the Constitution? All of us here in this Parliament are constitutionally obliged to make sure that we accelerate land reform as fast as we possibly can.

We do have the means and mechanisms to speed up agrarian reform if we use our legislation and the Constitution effectively, because the land and agrarian reform is deemed to be in the public interest. Therefore, the policy also states that where land is acquired for land reform through purchase or expropriation, the state is obliged to pay just and equitable compensation. On the basis of the above, we had a land summit some time ago in Gauteng at which all stakeholders gathered for one purpose only and that was to look at the pace of land and agrarian reform in this country. I therefore believe that in that summit the delegates mentioned that we need to relook at some of our mechanisms to meet this constitutional requirement.

The government set a target to redistribute 30% of agricultural land to previously disadvantaged groups within a period of 10 years, namely by

1. This objective is not likely to be met if one considers the rate at which land reform implementation is taking place at the moment. Ultimately, that would delay the process of land delivery in this country of ours.

In the South African experience over the past 11 years with the implementation of the land and agrarian reform programme, the white commercial farmers or landowners have had the latitude in terms of determining the price that suits them, regardless of the buyer’s ability to enter into transactions regarding the land in question. They exercised their veto power.

For example, we were told by Azapo at the land summit that I referred to - Mr Nefolovhodwe is listening there - that statistics showed that 10 years after democracy land ownership was roughly as follows: 55 000 white farmers owned all farmland outside the designated poor reserves, and black-owned land and emerging farmers were still to be quantified.

They went further and said that 83% of land was white-owned, 17% was black- owned; or rather, that 87% was white-owned farmland, and 13% was black- owned poor land. This was according to Azapo. If the state of affairs stated above by Azapo is correct, we are in trouble.

To go back to what I have just said, because beneficiaries of land and agrarian reform are powerless - albeit they are supported by the state in their endeavours – they cannot and will not exercise a veto power as opposed to commercial farmers.

Therefore, in the prevailing circumstances is it not necessary, Comrade Minister and Deputy Minister, to think carefully about expropriation in terms of the Constitution and other relevant legislation, as they say that where land is acquired for land reform through purchase or expropriation, the state is obliged to pay just equitable compensation? What just equitable compensation means is for you to determine, but it should not be blown out of proportion. It means what it means.

The public interest also includes the nation’s commitment to land reform, and to bring about equitable access to all Africa’s natural resources.

In restitution, selective expropriation is advocated, especially in areas where negotiations with landowners are not fruitful, or where excessive prices are being demanded by landowners. Such expropriation is adequately provided for in the Constitution. Sections referred to are sections 25(4), 25(1), 25(2) and 25(3). Therefore, that will not be a problem.

The recognition of land distribution as part of the broader developmental objectives of government need to be clearly outlined by the department - in both restitution and redistribution. Most of the focus has been mainly on the delivery of land, rather than on enhancing the sustainability of land reform projects and programmes.

For example, in the committee’s oversight visit in August 2005, we found some projects really wanting. I will mention one of them, the Paprika Project, which is in the Northern Cape. I am told that this is a provincial project. We need more explanation regarding this project. What went wrong? We were told that that project had 12 emerging farmers who became workers on their own farm, and that the Gili Company was responsible for the management of that particular project.

We need to know what went wrong with that project. The government injected R90 million into that project. Farmers were allocated 10 hectares each. The money allocated was for water infrastructure. We were also told that the Land Bank came on board to assist farmers with a loan of R57 million for production purposes.

Furthermore, we were told that the problem started to develop between the company and the farmers. The Orange River is within walking distance from that farm. Opposite, on Namibian soil, the farmers who were doing very well. That particular area was green when we were there. In this area of ours there was no production and tractors were broken down. Of course we need to learn from some of these mistakes to see what we can do to avoid repeating the same mistakes and to look for a way forward. This particular project has completely collapsed.

We also visited a project in Upington where we found two female farmers who were doing very well with cotton and lucerne production on 17 hectares of land. They had already produced 70 tons of lucerne at R700 a ton. Also, they got R6 000 per hectare for cotton per annum.

We also went to the Free State where there was a project called the Kutlwanong Farm Trust, which was part of a select project of about 200 beneficiaries who were settled on 4 000 hectares of land in 1996. This also needs urgent intervention by both the provincial and the national governments. This is just to mention a few. Nothing was taking place on that farm and the project was also deteriorating. The implements bought were not taken care of, Comrade Minister and Deputy Minister. There is a need for legislation to force these provinces to perform as expected. As a committee we will help if needs be.

The Eastern Cape Land Care project in Sterkspruit is also doing very well. More community members are involved and working very hard, but more needs to be done there in terms of co-ordination between the project managers, traditional leaders and public representatives - in particular the ward councillor and the broader community, including your community development workers and ward committee members. The only problem there was that the workers were not properly paid as expected, in terms of this particular project.

In his state of the nation address of 2006, the President indicated that government would ensure that the land redistribution programme was aligned to the provincial growth and development strategy and integrated development plans of municipalities. The challenge is that the directive demands that the department devises a coherent, interdepartmental development support strategy, that will enable beneficiaries of land reform to gain access to the support offered by various departments and agencies.

Therefore, it is critical that we embark vigorously on the skills development programmes. One of the reasons why some of the projects are in the state in which they are now is because of a skills shortage. I am wondering what Nafu (National African Farmers Union) is doing about their members who need some assistance in skills development. Are Nafu and AgriSA meeting as farmer organisations to address these problems or are they just looking after their own individual interests?

We need a joint effort in terms of skills development. All stakeholders must join hands to address this issue - the state, AgriSA, Nafu, Agriseta and all other interested parties, in particular the white commercial farmers. They have been in this game for decades if not centuries. We need them. We need their individual support and assistance with individual emerging farmers to make sure that land reform progresses very well.

In order for us to deal with the growth and development envisaged by Asgisa and to build an economy so that every South African will have a better life and be part of poverty eradication, we must look at the proper realignment of these agencies. It is also critical that we move with speed, that we accelerate land transformation so that poor people will benefit, more especially the rural community that depend on land for survival.

Infrastructure development is very important and that part of the Asgisa programme should also focus on agricultural infrastructure development, because we all agree that land and agriculture are the backbone of the South African economy. Therefore, without infrastructure in terms of water irrigation and proper roads that link these farmers with the markets, our efforts to transform this sector will be doomed or fruitless. I thank you. [Applause.]

Mr E J LUCAS: Chairperson, I have only recently joined the committee on agriculture and land affairs, so it is an honour for me to be speaking here today for the first time on these two important Budget Votes.

The Departments of Agriculture and Land Affairs have the potential to make an enormous impact both economically and socially on the lives of many South Africans. It is of vital importance that they receive the necessary funding and attention needed to accomplish their objectives. We, in the IFP, were therefore pleased that they received attention during President Mbeki’s state of the nation address earlier this year.

The aim of the Department of Land Affairs is to create and maintain an equitable and sustainable land dispensation that results in social and economic development for all South Africans. The overall allocation to this department has increased from R3,9 billion in the 2005-06 adjusted appropriation to almost R4,9 billion in 2006-07, with Programme 3: Restitution, receiving the largest share. With the exception of Programme 2: Surveys and Mapping, the rest of the programmes all received increases to their allocations in 2006-07.

The land question has been a burning issue in South Africa for some time now and it shows no signs of dying down. We do understand that the department is faced with many challenges and obstacles, but it is imperative that all the role-players and stakeholders work together to try to reach some sort of consensus, so that the important issues are dealt with in a way that does not lead to uncertainty and enables current deadlines to be met.

The department is currently faced with the very difficult situation in which some landowners are reluctant to part with their land or accept the terms of condition of sale offered by government. This is contributing to the slow pace of land reform and is causing many people, who are still waiting for their land, to become frustrated and to call for more drastic measures to be taken in order to speed up the process.

The situation cannot continue. Ways and means of moving forward and completing this process within the specific period must be found. It is also time that all relevant and effective parties work together in a cohesive, open and honest way to assist with the completion of this process.

The total allocation to the Department of Agriculture for 2006-07 financial year has decreased from R1,99 billion last year to R1,95 billion in the current budget. This represents an overall decrease of 2%. The decrease is as a result of, amongst other things, the allocation to the Biosecurity and Disaster Management Programme decreasing by 35,8%, and the Sector Service and Partnership Programme decreasing by 0,8%.

The fight against poverty alleviation and the plight of the poor, especially in the rural areas, are just some of the pressing issues in which agriculture can play a leading role. It is, therefore, a matter of concern that the department’s expenditure is only expected to grow by 0,3% in the medium term. We, in the IFP, hope that this will not negatively affect the performance of the department and get in the way of reaching its objectives.

Agriculture impacts on the lives of many people in different but equally important ways. Although it has a leading role to play in the alleviation of poverty and in ensuring food security, the impact that agriculture can, and should, have on the economy is also great.

One of the major challenges facing the department is to broaden participation in the agricultural sector and to provide access to the industry for those who were previously disadvantaged. It is therefore with great anticipation that we await the finalisation and adoption of the AgriBEE charter, which will, hopefully, facilitate ownership and participation by previously disadvantaged people within this important sector.

The government had to intervene recently in the matter relating to 75 farms given back to the communities in the Limpopo region. It was reported that the majority of the farms, which were bought for R150 million, were not productive as beneficiaries lacked the funds and skills to utilise them.

Situations such as the above must not become the norm. Getting previously disadvantaged people access to farms and the agricultural sector is just the first step. We must make it a priority to leave them with the necessary skills so that they are not disadvantaged in any way, and have the means not just to make their farms productive but economically successful. We urge the department, as well as the relevant role-players, to seriously look into this important issue. We need to retain ownership of our land and make the farms more profitable.

The Departments of Agriculture and Land Affairs have already contributed greatly to the improvement of the lives of many South Africans, but there is still so much more that they can do, both socially and economically. The potential impact of these departments can be immense, if the many challenges and obstacles that they are currently facing are overcome. Only then will the true impact of these departments be felt. The IFP supports Budget Votes 25 and 29. I thank you. [Applause.]

Ms S N (Sylvia Nomatamsanqa) SIGCAU: Madam Chair and hon members, the Department of Agriculture, with its programmes now reduced to five, has by far the most important priorities residing under Programme 2: Livelihoods, Economics and Business Development. Rightly so, the single largest chunk of the department’s budget is allocated to this programme.

The UDM maintains that emerging farmers require a type of one-stop shop support facility in each major agricultural region, which would not only bring together the variety of the department’s and the private sector’s services, but would also draw upon the expertise of established farmers as mentors. We believe that the various objectives of the Comprehensive Agricultural Support Programme, the CASP, can best be achieved in this fashion.

Another facet that impacts upon Programme 3 is the question of regular droughts, especially the increasing frequency and duration of the dry seasons in certain parts of the country. The department needs to revisit the question of irrigation schemes in order to, where possible, extend current schemes to cover larger areas. It would also not be amiss for the department and the Department of Water Affairs and Forestry to explore the possibility of irrigation and water supply redistribution in the Eastern Cape, where significant amounts of water are essentially untapped.

The second matter is the resolution of the willing-buyer, willing-seller issue. Rights, including those to property, can be limited in certain circumstances and the departments would do well to turn to expropriation only as a last resort. The redistribution of land is important and should always be pursued with awareness of the highly emotional nature of landownership.

The UDM supports Budget Votes 25 and 29 – Agriculture and Land Affairs. I thank you, Chairperson. [Applause.]

Ms B THOMSON: Thank you, Chair.

… mhlonishwa Thoko Didiza, oNgqongqoshe abakhona eNdlini … [The hon Thoko Didiza, Ministers present in the House …]

… MECs, heads of departments present, hon members, ladies and gentlemen, thank you, hon Minister, for the encouraging words on this Budget Vote today. It is now 11 years since we started out on the road to democracy. We have indeed seen positive changes in some of our people, especially in the previously disadvantaged groups of this country.

Be that as it may, I’m also equally concerned about the evident poverty engulfing our people, especially the rural masses. This is a form of everyday life. Our people still find themselves in this poverty trap. There is at least one hope, though, that could break this cycle and it is agriculture. A certain writer once said, “No farmer, no food.”

Nokho-ke kudingeka siyithathe le nselelo yendlala futhi siyenze ibe yithuba esingalisebenzisa ekuguquleni izimpilo zabantu bakithi, ikakhulukazi ezindaweni ezisemaphandleni lapho indlala isina izibethela khona kubantu bakithi. Ingani siyavumelana sonke ukuthi amaphesenti angama-70 wabantu base-Afrika bahlala kulezi zindawo ezintulayo. Yilapho-ke kulele khona mathuba okwandisa izitshalo, imfuyo, ukutshalwa kwezimbali ngenhloso yokuzithumela emazweni angaphandle ukuze phela sikwazi ukuqinisa amakhukhu abantu bakithi, ngoba phela nawo amakhukhu lawa awanalutho.

Kwelakithi KwaZulu-Natali, sibonga asiwuvali umlomo futhi siyaziqhayisa ngemisebenzi yalo mnyango. Ngiyethemba uSolwazi, ubaba uNdabandaba noDokotela uMjwara, bakhona phakathi kwethu namuhla. Ngiyazibongela futhi ngiyazikhuthaza nezinye izifundazwe. (Translation of isiZulu paragraphs follows.)

[However, we need to take up the challenge of poverty alleviation. We need to use it as an instrument to improve the quality of the lives of our people, particularly those who stay in rural areas where poverty is very rife. We all agree that 70% of our African people stay in poverty-stricken areas. That is where we need to increase harvesting, the breeding of animals, as well as the production of flowers which we export in order to generate funds for our people, since their pockets are empty.

In our province, KwaZulu-Natal, we are very grateful and proud of the services we receive from this department. I hope that both Prof Ndabandaba and Dr Mjwara are here today. I thank you and encourage other provinces to follow suit.]

What is striking in KwaZulu-Natal is the Siyavuma Programme, a hands-on approach to poverty alleviation, food security and the gradual elevation of resources to poor and emerging farmers. Household food security is one thing, while commercialisation is another.

Ngizwile-ke ngandlebenye ukuthi ngisho namagundane aseMaphophoma kwaNongoma akhuluphele ayaqhuma, ingani nawo azitika ngokudla lokhu okutshalwayo. [Uhleko.] [I heard rumours that even the rats of Maphophoma, KwaNongoma, are very fat because they are feeding on our agricultural produce.] [Laughter.]]

Equally commendable are the innovative programmes and projects, such as the production of mushrooms and upland dry rice. Though these are pilot projects, the momentum has been unstoppable. People are eating mushrooms and people are eating rice. I urge other provinces to take a keen interest in this. We all know that a few grams of mushrooms cost no less than R10, yet surprisingly I have learnt that mushrooms can easily be produced and harvested on a frequent basis. Yes, the agrarian revolution in KZN is a step ahead. It encompasses a ladder of development in terms of which subsistence farmers can graduate to commercial farming.

I also need to emphasise the fact that agriculture cannot progress without land. Agriculture needs the support of the Department of Land Affairs and the Land Claims Commission. This will enable agriculture to align itself with the targeted areas of land restitution and redistribution, especially in this Budget Vote.

It only makes sense knowing that the targeted areas, effectively land and agricultural potential, will be put to proper use. It makes me feel good to say so, because the hon Minister Thoko Didiza’s competence is both Land and Agriculture.

Uma sengiphetha, ngifuna ukusho ukuthi abantu balibheke ngabomvu uhlelo lomnyango wethu, i-Agribee. Sizobhukula-ke, senze konke okusemandleni ukuthi lube yimpumelelo. [In conclusion, I must say that our communities are looking forward to our department’s programme, called AgriBEE. We are going to work very hard in order to make it a success.]

In the pursuit of agricultural activities, let us all use our natural resources wisely and judiciously. Let us eradicate poverty without compromising the environment. That is sustainability. Ngiyabonga kakhulu. [Ihlombe.] [Thank you very much. [Applause.]]

Mr L W GREYLING: Hon Chair, South Africa has moved from a highly protected and subsidised agricultural sector to one of the least protected in the world, which in the face of huge agricultural subsidies in the North have made farming a very risky profession. This is coupled with the threat of climate change and the enormous strain which it is putting on our water resources.

These changes have led to agriculture shedding a number of jobs and exacerbating our high unemployment rate. Some commentators believe that South Africa’s future does not lie in agriculture and that the government should place its emphasis on simply creating an industrialised economy.

The ID disagrees with this. It is important to note that many of the so- called Asian tigers initially relied on agriculture as the basis for their economic takeoff. In the economies such as those of China and Taiwan it was the extensive land reform programmes that created an equitable basis for their future economic growth.

It is important that we truly tackle the issue of land reform in South Africa, and that government and landowners work together to prevent our land reform target from becoming a constantly moving target.

The ID is also concerned that despite the enactment of the Extension of Security of Tenure Act, we are still seeing the eviction of farmworkers, particularly in the Western Cape. The ID would like to see rights education programmes being stepped up throughout the country and, in accordance with the court judgment of 2001, all possible evictees being given free access to legal representation.

Ultimately, though, the challenge for land reform is to not only transfer land, but to ensure that the land generates wealth for the beneficiaries in society as a whole. To do this the level of post-settlement support needs to be drastically improved.

The Freedom Charter states that the state shall help the peasants with implements, seeds, tractors and dams to save the soil and assist the tillers. I know of many rural communities that don’t receive a fraction of that support, and it is time for us to prioritise their needs. This is particularly the case for small-scale agriculture which, if nothing else, could be a very effective poverty alleviation strategy and provide a sustainable livelihood for many rural people who are enduring grinding poverty.

The ID therefore commends the work that is being done in the Mbashe region to assist small-scale farmers. This initiative needs to be extended to all impoverished areas in the Eastern Cape where so many of our people rely solely on the land to provide for their livelihood. It is extremely sad for me to visit rural areas where people are buying their vegetables from local trading stores at sometimes three times the price charged in cities.

I have also, however, seen some households turn their plots of land into productive farming entities through the assistance and training of nongovernmental organisations. These efforts need to be broadened and the government should be running a Public Works scheme that trains some rural unemployed people. Thank you. [Time expired.]

Mrs C DUDLEY: Chair, hon Minister, the ACDP recognises that in the fight to alleviate poverty in South Africa, agriculture has a critical role, and the ACDP supports efforts to address the challenges of poverty and underdevelopment.

Capacity problems continue to plague provinces, and the North West agriculture department is one such example. Having suspended several key directors and chief directors in 2005 on charges of fraud and corruption, it is reported that they are unlikely to spend more than 2% of the R140 million budget this year.

The group managing director of Nepro (National Emerging Red Meat Producer’s Organisation) referred to “lack of capacity, indecisive officials and misallocation of funds” as contributing to deteriorating service delivery in almost all provincial departments of agriculture, posing a threat not only to agriculture but to the economy as a whole. Nepro represents South Africa’s emerging livestock farmers who own about 47% of the country’s total livestock and who are said to contribute about 5% to the country’s GDP.

Of particular concern for the ACDP is the budget cut of over 51% in the allocation to food, animal health and disaster management. Not only will we fail to address shortages of veterinary scientists and other skilled personnel, the problem will also be intensified.

Funds allocated to land acquisition are being scaled back, with the exception of land restitution, which does not bode well. Government’s stated intention to abandon its willing-buyer, willing-seller policy is highlighted by an HSRC study, which concluded that even without taking into account land values since 2003, at least R4 billion a year would be needed if land were to be purchased. This is more than the department’s entire budget this year.

The R80 million allocated over the next three years to the implementation of the Communal Land Rights Bill also falls far short of the estimated R500 million a year that is needed. The ACDP will not be able to support this budget. Thank you.

The DEPUTY MINISTER FOR AGRICULTURE AND LAND AFFAIRS: Madam Deputy Speaker, a few years ago our President gave a quite remarkable speech, which was not mentioned much in the media, at an international event in Esselen Park. He asked in that speech that we, once again, attend to the concept of the agrarian question. In a sense he was revisiting the work of the late Govan Mbeki, who was a major figure in the leadership of the ANC and who participated in and analysed the problems of rural people during the rural political structure of the 1940s up to the early 1960s. You must read his book called The peasants revolt.

What is this agrarian question? I personally believe that we can understand a lot better if we take it from this perspective. The agrarian question analyses two historical processes. On the one hand, as a kind of first phase, it analyses how capitalist-social relations are established in agriculture, and how there is a consequent transformation of production and productivity.

On the other hand, as a kind of second phase, this agrarian question analyses the mechanisms through which you get increased agricultural production, which leads to the formation and development of industry or agro-industry. Actually, I think we are in a kind of third phase of this agrarian transition.

In the first phase the agrarian question was resolved for white farmers by the apartheid system. In the second phase, it was being completed for big capital and agro-industrial development by the waves of deregulation and market liberalisation. The agrarian interest in the apartheid state was expressed in the extensive subsidies and regulation, to support white farming.

My hon friend of the Freedom Front will remember that as the state and big capital started to plan for the end of apartheid, support for white farming dwindled, and they joined the Conservative Party in those days. [Interjections.] Now with the assertion further, of greater competitiveness and efficiency, large-scale capitalist agriculture and industrial farming is striding forward. That is where we are now.

But for the dispossessed and the historically disadvantaged, the agrarian question is not resolved and it is not completed. We are still in this third phase, and this is likely to continue for some time. Without state involvement in the socioeconomic relations and state involvement in the conditions of accumulation, progress will not happen.

What gave success in the first and second phases must be retained. There must be state support and there must be building of capital, but that is not enough. More must be added, because of the simple enormity of the remaining agrarian problem. There are two issues regarding this third phase. I just want to concentrate on two of these issues that are conspicuous.

In the first place, the agrarian question has a quite localised nature. In the second instance, we should take very good care that the building of capital does not exclude the masses of the people. In other words, that economic growth is shared and that agricultural black empowerment is indeed broad-based and extensive.

Let me just first talk about the local nature of the agrarian question and give you a practical example. If you go to Mafikeng, you will see that there is a large communal area in the Molopo area, which is part of the old Bophuthatswana. There is a problem in that it is mostly grazing areas for cattle. There is a problem with water, as the boreholes are not working, and the windmills have not been repaired. Where there is pumping equipment, it just stands there.

What the people do - and I would have done the same - is that in the evenings they take their cattle to their homes, and let them drink from the small towns’ water. A large cow consumes about 60 litres of water per day, whilst a human being comfortably consumes 25 litres. Although all the systems of reticulation in those towns are in working order, the storage dams are running empty. There is a water problem. It can be solved very easily. We must just repair the windmills and the boreholes, and it can be done.

We have the Comprehensive Agricultural Support Programme, the CASP, which the provinces can lend support to. We can train some of the young guys to work with the pipes, windmills and pumps. We can get the local water board, which has the capacity, involved. But then we must work together with the local authorities in that area. That is why I say this has a local character.

We have made much progress in delivering land reform and services at the local level. But there is considerable room for improvement, especially in terms of planning and implementation of co-ordination between the three spheres of government. The President has articulated this. We need to move fast. We need to get local economic growth with state support at national, provincial and local levels.

The second issue, which I want to address in this regard, is that we must have great clarity on the extensive nature, the wide nature of the AgriBEE policy. We have this Asgisa plan, but we tend to ignore the “s” in Asgisa. It is the Accelerated and Shared Growth Initiative for South Africa. We all talk about this accelerated economic growth, but we sometimes ignore the “shared” part. Am I right?

What are the goals of Asgisa? There are three goals. Firstly, it is accelerated economic growth, and that is good. The second goal of Asgisa is employment creation. The third goal is to reduce poverty. In other words, this Asgisa programme has broad developmental goals. Yet, it is true, that we must develop meaningful economic participation by mainstreaming new black farmers and entrepreneurs.

But we must not forget that AgriBEE must also contribute to job creation and reduce poverty, otherwise we have got it wrong. AgriBEE must truly become part of the resolution of this third phase of the agrarian question. South Africa has a limited potential for horizontal expansion of agriculture production. There is some potential for vertical expansion, especially in the old former homeland areas.

If AgriBEE must, as I say, create job opportunities and reduce poverty, we must consider two other matters besides mere economic growth. The first one Dr Kraai referred to, namely that international evidence suggests that small farms are more efficient per hectare than larger farms. That is an international given. This is attributed to the greater use of labour per unit of land, mainly family labour.

But we can only understand why the production rate of smaller farms is lacking in South Africa if we look at this from the perspective of the agrarian question. Professor Kassier said to farmers in the late 1980s or early 1990s: “Get bigger, or get out.” This was because of the profit explanation of farming, which Dr Kraai referred to this afternoon.

The moment you look at it you see that the real reason for this tendency is the first and second phase of the solution of the agrarian question - that it becomes an agro-industry. Then one can understand why the family farmer is disappearing - it is the same all over the world. It is only possible when you see these historical processes in perspective. So, the big challenge is how you can turn the tide in that respect.

The second thing I want to mention is that land reform, on its own, may have adverse consequences, I dare to say, for rural livelihoods. Land reform cannot stand on its own. It must include the objectives of job creation and poverty reduction. Land reform must be accompanied by the availability of labour-intensive methods, efforts to improve the skills of farmworkers and owners to create greater employment.

This must be proactively promoted by the state. Land reform will not, of necessity, provide more jobs in agriculture. It may be that it will merely replace the current labour on farms. To conclude the third phase of the agrarian question, land reform must be developmental in nature. There must be a long-term commitment by the state. We must commit human resources, we must commit financial resources, and we must commit natural resources to production processes, which we can then say are labour-intensive and not labour-saving.

I also want to mention a few successes achieved by the state-owned entities reporting to this Ministry. The Land Bank has a programme called corporate social investment. It entered into a partnership to provide safe drinking water to previously disadvantaged schools and communities in the outlying rural areas. The pilot phase of this started in Limpopo, with the provision of safe drinking-water boreholes at nine schools. The second phase of the project will be rolled out to 18 schools in the Eastern Cape in the present 2006-07 financial year.

If you look at the Agricultural Research Council (ARC), you will see that their Exotic Diseases Division has evaluated the efficacy of two vaccines produced by Fort Dodge and Intervet respectively, against avian influenza of the H5N2 version. The intention is that if the vaccines are efficacious, the Department of Agriculture will recommend licensing them for use by the ostrich industry.

As part of the application of the Meteosat second-generation data in agriculture project, which is funded by the EU, a satellite dish was installed at the ARC by means of which the whole of Africa and its oceans are receiving data every 15 minutes from a satellite located 3 600 kilometres above the earth.

The project researches the data received for agriculture purposes like drought monitoring, animal stress, and certain plant pest indices. The control of migratory pests, weeds and diseases is a public good basic to the agricultural sector and to risk management in agriculture. At the ARC Infruitec-Nietvoorbij, here in the Western Cape, a number of table grape selections from their breeding programme have been evaluated overseas, and extremely positive results were obtained in Spain and California during the past seasons.

A late white seedless selection did especially well in both California and Spain, and registration for plant breeders’ rights are under way. A licence agreement to commercialise two of the ARC’s red table grapes in Tunisia and Saudi Arabia was finalised. Currently, we are busy with three other licence agreements to commercialise Infruitec-Nietvoorbij’s red-stone fruit varieties in Tunisia, Turkey, Morocco, Chile and Australia.

The first ever contract with regard to international collaboration between the ARC and CIRAD in France, regarding the evaluation of foreign pineapple cultivars under local conditions, was signed during November 2005. These 11 pineapple hybrid lines are now being multiplied by tissue culture in Nelspruit. This is a major intervention that would benefit the pineapple industry in South Africa, because material of superior and improved quality with regard to several horticultural aspects may now become available locally in South Africa. Thank you very much. [Time expired.] [Applause.]

Mnr P J GROENEWALD: Agb Voorsitter, ek wil net vir die agb Adjunkminister sê dat die subsidiëring van die landbou ‘n wêreldverskynsel is; dit was nie ‘n unieke verskynsel voor 1994 nie, en my beskeie advies aan die agb Adjunkminister is: Agb Adjunkminister, u moet tog asseblief nie probeer boer nie, ek dink nie dit sal ‘n sukses wees nie.

Daar word gereeld in verskeie mediabronne berig dat die boere die oorsaak vir die vertraging in grondhervorming is. Die boere wil glo té veel geld hê vir hul plase en dit is die boere se skuld.

Ek wil vanmiddag hier een voorbeeld noem, net een voorbeeld om aan die agb Minister te verduidelik dat dit nie die boere is nie, maar sy en haar departement wat grondhervorming in dié land beperk en strem. Ek verwys spesifiek na die Dalmanutha-grondeis wat ingestel is in Machadodorp.

In Maart 2004 besoek die boer, mnr Oostewald van Niekerk, die agb Minister. Hy vlieg spesiaal af Kaapstad toe. Hy verduidelik sy probleem: Daar is twee waardasies gedoen; ‘n kontrak is ogestel en hy het dit onderteken en die aanbod aanvaar. Toe skielik is daar ‘n probleem met die twee waardasies. Die agb Minister onderneem om daaraan aandag te skenk. In die begrotingsposdebat in 2004 vra ek die agb Minister daarna en sy erken dat daar ‘n probleem is en dat hulle daaraan aandag skenk. Sy vra selfs om verskoning.

Ons is nou in Maart 2006 en nog steeds is daardie eis nie afgehandel nie. Daar is al ‘n derde waardasie gedoen; inteendeel, dié waardasie is in Meimaand 2005 gedoen. In September 2005 maak hulle weer ‘n aanbod aan die boere en wat deur hulle onderteken word.

Die probleem is, intussen moes dié boere hul boerderybedrywighede staak. In mnr Van Niekerk se geval het hy ‘n florerende forelbesigheid tot niet gemaak. Waarmee en hoe kan daardie boere oorleef?

Nee, dít is die departement en die agb Minister. En ná sy ingegryp het, neem dit nog steeds twee jaar. Dit kan nie so aangaan nie. Ek vra die agb Minister: As u u amptenare wil herontplooi, daar is party van hulle wat nie herontplooi moet word nie, moet u hulle liewer “fire” [afdank], want dan sal daar dalk iets gebeur. Dankie, Voorsitter. (Translation of Afrikaans speech follows.)

[Mr P J GROENEWALD: Hon Chairperson, I just want to tell the hon Deputy Minister that the subsidisation of agriculture is a world-wide phenomenon; it was not something unique before 1994, and my humble advice to the hon Deputy Minister is: Hon Deputy Minister, please do not try to go and farm, I do not think it will be a success.

It is often said in various media sources that the farmers are the cause of the delay in land reform. Apparently the farmers want too much money for their farms and it is the farmers’ fault.

I want to mention one example here this afternoon, just one example to explain to the hon Minister that it is not the farmers, but she and her department who are limiting and hindering land reform in this country. I am referring specifically to the Dalmanutha land claim which was submitted in Machadodorp.

In March 2004, the farmer, Mr Oostewald van Niekerk visited the hon Minister. He flew down to Cape Town especially. He explained his problem: Two valuations had been made; a contract had been given and he had signed it and accepted the offer. Then suddenly there was a problem with the two valuations. The hon Minister promised to attend to the matter. In the Vote debate in 2004 I asked the hon Minister and she admitted that there was a problem and that they were attending to it. She even apologised.

We are now in March 2006 and that claim has still not been finalised. A third valuation was made; on the contrary, this valuation was made in May

1. In September 2005 they made another offer to the farmers, which was signed by them.

The problem is that in the meantime these farmers had to cease their farming activities. In the case of Mr Van Niekerk a flourishing trout business was destroyed. With what and how can those farmers survive?

No, it is the department and the hon Minister. And after she had intervened, it still took two years. We cannot go on like this. I ask the hon Minister: If you want to redeploy your officials, there are some of them who should not be redeployed; you should rather fire them, because maybe something would happen then. Thank you, Chairperson.]

Mr M V NGEMA: Chairperson, may I begin my speech by quoting Oliver Wendell Holmes who said, “The great thing in this world is not so much where we stand, as in what direction we are moving.”

The above statement focuses on the importance of moving in the right direction - to achieve excellence and success in whatever we set out to do. The statement does not say that where we are is irrelevant, because it is on the basis of knowing where we are in relation to our destination that we are able to make an extra effort or change direction and move on.

The two departments are looked to to lead our efforts in addressing the challenges of the second economy, as posed by poverty, and understanding the marginalisation of the majority of our people, which is underpinned by the issues resulting from the lack of access to land.

The experience such as one that was reported in Limpopo of the 71 black farmers and the one reported in the Isolezwe yesterday, indicate that we still have problems: Firstly, our system of availing land, particularly productive land to our people should be accompanied by the relevant skills. The second issue in Isolezwe relates to problems experienced by farmers as far as yesterday’s story is concerned.

The expenditure of the Department of Agriculture has declined by 2%, and is expected to grow by only 0,3% over the MTEF period. How does the Minister see success in terms of the expectations of Asgisa in the face of this budget reduction?

We ask this question against the fact that during 2005-06 we needed an additional allocation to cover unforeseen expenditure on drought relief and on combating the outbreak of swine fever. The present climatic conditions keep on changing, suggesting that South Africa will still experience drought as well as recurring outbreaks of diseases. Nadeco supports the budget. [Time expired.] [Applause.]

Ms C NKUNA: Hon Chair, Hon Deputy President, hon Ministers and Deputy Minister, agriculture and land MECs from provinces, land commissioners, heads of entities for agriculture and land, colleagues, I thank you. Allow me to start by quoting the Director-General of the Department of Land Affairs.

South Africa’s political and economic isolation by the rest of the world during apartheid has made us believe that inequality in land ownership created by apartheid is the norm. It is not. And it is quite valid to want a different agrarian structure, not just one in which some of the existing white faces are replaced by black faces, while leaving the farm size distribution essentially unchanged.

Director-General Glen Thomas, I totally agree with you. What one would like to say is: Let us now work towards changing the norm - this negative norm into a positive normative statement.

The President in his state of the nation address highlighted that Asgisa identified agriculture as one of the sectors to be developed for accelerated growth and that it was an important component of the economy, located within the underlining intentions of Asgisa.

Ndzi pfumelele ndzi vulavula hi vamanana, hi vantshwa kun’we ni vatsoniwa. Ku komba leswaku ndzhawulo leyi yi na vamanana embilwini, murhangeri wa yona hi yena holobye Manana Thoko Didiza. Hina vamanana lava va humaka eka swifundzankulu vo fana na vamanana Magadzi, lava rhangelaka ndzawulo ya ta vurimi exifundzeni xa Limpopo.

Hina vamanana Tina Joemat Petersen, lava rhangelaka vurimieka xifundza xa Northern Cape. Loko a ku ngari timhaka ta reshuffling leyi endlekaku minkarhi yo tala a hi ta va hi ri na vamanana vo tala laha eka ndzawulo ya vurimi. Ha swi tiva leswaku vamanana vo tala va rhangerile mindyangu, hikuva vatatana va yile emintirhweni lomuya emadorobeni. Leswi swi ta lava leswaku hi swi siva kumbe hi swi herisa. Ndzawulo ya Swavurimi yi na minongonoko leyi landzelaka, ndzi ta yi vulavula hi xilungu, external busary schemes, agriculture industry development, experimental training and internship, membership programme and Abet.

Ndzi pfumeleleni ku va ndzi sungula hi ku vulavula hi external busary scheme. Yi sungurile hi lembe ra 2004. Vana lava va pfunekeke sweswi va fika eka 344, vaxinuna i 152, vaxisati 192, leswi swi kombaka leswaku ndzawulo leyi yina vamanana embilwini ya yona.

Xavumbirhi lexi ndzi lavaka ku vualavula hi xona eka nongonoko I agriculture industry development programme. Ndzawulo leyi yi trainer vantshwa, eka swa mabindzu na leswaku va fanela ku ya hlayisisa ku yini. Varimi vantshwa la va nga na lembe rin’we kumbe mabirhi va pfumeleriwa ku va va ya tsarisa na yunivhesithi ya Stellenbosch, xi nga xikolo xa swamabindzu.

Nongonoko un’wana I agricultural management development programme, vantshwa va nyikiwa tibazari kuri va kota ki tipfuna. Va vitaniwa ti-interns kumbe titrainees. Va tlhela va kuma na muholonyana ehenhla ka swona leswaku va kota ku ya xava mabindzu ya vona vinyi. Xana impela a yi swi voni leswaku ndzawulo leyi ya swa vurimi ku na leswi yi endlaka swona naa? Naswona nongonoko lowu wu pfunile 60 ya vantshwa eka vona 36 vaxinuna na 24 vaxisati. Xikongomelonkulu eka nongonoko lowu i ku endla leswaku lembe ra 2007, 50% ya vona vava va ri na mabindzu ya vona. Leswi swi ta hunguta ku pfumaleka ka mintirho.

Nongonoko wun’wana lowu vitaniwaka experiential training internship programme, lowu nongonoko i wo pfuna lava va pfumalaka mintirho va ri karhi va ri tigraduates, ha swi tiva leswaku hina vana vo tala lava nga graduata in agriculture kambe a vana mintirho, va kota ku endla swintirhwana va nga si kuma degree ya vona.

Ndzi pfumelele ndzi nghena eka vatsoniwa, tanihi hi laha ku endliweke leswinene eka vamanana na vatshwa, vatsoniwa a va endleriwanga nchumu. A kuna mutsoniwa loyi a thoriweke eka xiyimo xa le henhla, ntsena ku na ku na xiphemu xa zero comma two three per cent xa vatsoniwa lexi xi thoriweke. Ku na xiyenge ehofisini ya DG leyi nga ta langutana na timhaka ta vatsoniwa.

Mundzuku loko hi yima laha hi tlhela hi debate hi ta va hi vula leswaku tolo u tlula namuthla. Ndzawulo leyi yi pfuna vamanana, xin’wana ku na mhaka ya tifomo, mikuma leswaku tifomo ti amendiwile laha eka ndzawulo ku endla leswaku vatsoniwa va kombela mintirho swi nga angarheli, swi tiveka leswaku i mutsoniwa loyi a kombelaka ntirho kutani na miako ya karhi ya cinciwa leswaku yi ta kota ku va friendly towards persons living with disability.

Ndzawulo leyi yi pfuna vamanana eka mintlangu ya xifundzankulu, yi tlhela yi pfuna eka mintlangu ya vurimi ya province- ku hlohletela vamanana kuri va yisa emahlweni mintirho ya vona ya vurimi. (Translation of Xitsonga paragraphs follows.)

[Allow me to focus on the vulnerable, being the women, the youth and the disabled, and let me start with the women. The fact that a woman, ie the hon Thoko Didiza, heads this department shows the seriousness with which this department considers women. We have women who hold leadership positions in different provinces. In Limpopo there is Mrs Dikeledi Magadzi who is the MEC of the Department of Agriculture.

We also have a woman, the hon Tina Joemat-Peterson, who is the MEC for Agriculture in the Northern Cape. Had it not been because of regular reshuffling, we would have many women at the Department of Agriculture. We are all aware that women run most households because their husbands work in far-away urban areas and this has to be addressed.

The Department of Agriculture has initiated a number of capacity-building programmes like the External Bursary Scheme, the Agriculture Industry Development Programme, the Experiential Training and Internship Programme, the Mentorship Programme and Abet. Allow me to first speak about the External Bursary Scheme that was started in 2004. There are 344 youths who received assistance from this scheme, of whom 152 are male and 192 female. This is a clear indication that the department does have the interests of women at heart.

Secondly, I want to speak about the Agriculture Industry Development Programme. This department trains youths on business enterprises and how to run them. Young farmers with one or two years experience are identified and selected to enrol with the Stellenbosch Business School.

The other programme is the Agricultural Development Programme wherein youths are given bursaries to study, considered as interns or trainees and qualifies for an allowance that will help them to buy their own enterprises. Looking at what I explained to you, can we still say we do not realise that the department is doing something? Through this programme, 60 youths were assisted, of whom 36 are male and 24 female. The main objective of this programme is to ensure that by 2007, 50% of the youth own their enterprises.

The Experiential Training and Internship Programme’s objective is to enhance employability of the unemployed, agricultural graduates by affording them an opportunity to gain practical work experience as is required of them to obtain their degrees.

Allow me to talk about the disabled. The disabled did not receive the benefits due to them, as did women and the youth. Not a single disabled person is employed at decision-making level, but the department has employed 0,23% of the disabled. There is a unit in the DG’s office that will address this issue.

When we gather here again tomorrow, we will attest that today is better than yesterday. This department helps women. The good thing is that application forms are being amended to cover people with disabilities and not to generalise. The buildings are being upgraded so that they can be friendly towards persons living with disability. This department hosts agricultural related activities for women at provincial level, thus encouraging female farmers to forge ahead in their farming activities.]

In conclusion, let us encourage the vulnerable to participate in these programmes. Let us create a situation that is conducive and friendly, so that they can participate so as to allow for a better tomorrow.

Lastly, hon Van Niekerk, on what you said earlier: There are a number of challenges, there are a number of disputes and conflicts in the communities over land that is claimed, and solving these is a big task. Hence, we talk, we talk and then there is implementation. I thank you all. [Applause.]]

Mr P H K DITSHETELO: Deputy Chair, Minister, the government has put forward a challenge to achieve an economic growth rate of 6% in order to address the issue of job and wealth creation. The implication of this proposed growth is that all sectors of our economy have to work at full capacity to boost production for domestic and international markets. Therefore, the question that we have to ask ourselves is: Has the government laid a solid foundation for such growth to take place?

This question becomes more relevant in regard to the agricultural sector. Are we competitive enough to produce quality products efficiently and effectively, and in a manner that meets the market demands of international markets that are characterised by unfair trading conditions for developing nations?

This challenge of competitiveness has further implications for government policies in terms of how it has to capacitate emerging farmers and agribusiness in general, in order to compete favourably at this level. It is this area of our economy that we need to get right if we are to achieve the dual purpose of growth and competitiveness.

It is a fact that the agricultural sector of our country is a major employer of rural labour as its activities are mostly labour-intensive. There is no doubt that this is the sector that can help halve our high unemployment rate of 26%.

As a country we are disadvantaged at this point in time as most of our agricultural, operational and production costs are said to be expensive compared to their counterparts elsewhere. Indeed, another dimension of our problem is the low number of formidable black farmers and professionals in this sector.

However, we have a well-developed agricultural sector, as driven by the private sector, but access to its technology and know-how by the previously disadvantaged communities has to be accelerated. We will support this Vote. Thank you, Chair. [Time expired.]

Mnu M T LIKOTSI: Mgcinisihlalo, malungu ahloniphekileyo, umbutho we-PAC uyavuya ngokuba sixoxa ngohlahlo lwabiwo-mali lonyaka-mali ka-2006-07 lweli sebe. Le mali sijonge lukhulu kuyo, ukuba iza kunceda ukulwa ubuhlwempu, ukunqongophala kwezindlu nentswelo-mhlaba ngabemi beli.

Amafama ethu angama-Afrika ayasokola kwiifama zawo ezincinci. Adinga umhlaba omhle otyebileyo kunye nemali yokuphuhlisa iifama zawo. Akulaa ntsokolo kaNowa.

Abantu abaninzi abafuna ukuba ngamafama abaphumeleli ukufumana iifama ngenxa yemigaqo ekhoyo elawula ukufumaneka komhlaba. Abantu bakuthi bahlala ematyotyombeni ngenxa yokudinga umhlaba wokubakhela izindlu kunye nezinye izinto ezininzi ekuhlaleni.

I-PAC ivakalisa phandle ukuba isizwe esingakwaziyo ukuphemba, esiphenjelwa ngabasemzini, siya kuhlala singamakhoboka naphakade. Masiyekeni ukudlala, madoda, nani boomama. La madlagusha, aba ndlebezikhanyilanga, bafika kweli lethu sikwazi ukuziphembela. Sasingabantu abahluthayo, sizithanda njengesizwe.

Urhulumente makakhawulezise iphulo lokubuyisela ilizwe lethu kubaninilo phambi kokuba singene engxakini. Ukufa kusembizeni! Izwe lethu! (Translation of isiXhosa speech follows.)

[Mr M T LIKOTSI: Chairperson and hon members, the PAC is happy to be taking part in the debate on the department’s Budget Vote of 2006/07. The fund allocated to the department will be used to harness resources for poverty alleviation, address the housing backlog and access land for the citizenry.

African farmers experience difficulties on their small farms. They need access to more arable and fertile land, and money to assist them to develop their farms. They struggle like Noah did.

Many people who would like to enter into farming do not succeed to secure land because of policies that regulate access to land. People live in informal settlements because there is no land available on which to build houses for them and many other amenities that they need in their communities.

The PAC would like to say explicitly that a nation that does not take the initiative, but waits for other nations to prescribe to them will remain slaves forever. Let us stop playing, fellow countrymen and women. These white people found us capable of doing a lot of things. We were a proud and affording nation.

The government should hasten its campaign of taking the country back to its rightful owners before we find ourselves in trouble. Trouble is brewing inside and we are the cause of it. Our land!]

Mr R B BHOOLA: Chairperson, hon Deputy President, in view of the budgets, both sectors yield great benefits for our economy, and agriculture in particular is set to make great contributions to South Africa’s shared growth strategy. Not only is agriculture set to alleviate poverty through food security, but job creation and the facilitation of ownership and participation of the less affluent in the sector by AgriBEE promises development too.

We do, however, acknowledge that this sector is greatly challenged by natural disasters such as drought, a shortage of skills and, as recently noted, the safety of farms. We do believe that these are prioritised by the department, and the reduction of its programmes from nine to five in order to secure greater oversight and delivery will serve to address these issues. Asgisa has also identified agriculture as a great contributor to our economy.

The MF believes that the effective mobilisation of Mafisa (Micro- Agricultural Finance Schemes of South Africa), the CASP (Comprehensive Agricultural Support Programme), and AgriBEE will yield development and will benefit the disadvantaged in the sector. Further, we stand with our President who, in his state of the nation address, noted that job creation and gender equality in the agriculture sector are priorities.

The MF notes the 2% decrease in the allocation to this sector and expresses our concern as the challenges of drought and diseases such as the world’s feared avian flu, can impact greatly on the performance of this sector this year.

As for land reformation and redistribution, we value the President’s undertakings to meet the targets for this sector in his state of the nation address. We, however, note the impact this makes on the Department of Land Affairs’ budget, as a greater need for resources emerges. However, the R6 million increase to the restitution budget shall hopefully serve to address that need.

The willing-seller, willing-buyer programme restitution of 8 651 claims by 31 March 2007, the distribution of 30% land to the previously disadvantaged, the disposal of 41 143 hectares of state land to the land reform programme, and the 224 777 hectares of land restitution all need to be accelerated so that the use of this land, once acquired, can be utilised to contribute towards the development of other sectors - poverty alleviation, social development and the growth of our economy.

Further, we express concern about the duplication and corruption in the sector and hope that funds will be utilised effectively and efficiently to oversee the DLA’s delivery and commitments as well. The MF supports Budget Votes 25 and 29.

Mrs M L NGWENYA: Chairperson, hon Minister, colleagues, MECs, allow me to quote the Speaker of the National Assembly Ms Baleka Mbete, who said during the state of the nation address:

This year’s theme sets the tone for reflection on achievements, failures and challenges regarding equality legislation we have passed since 1994.

The question that the theme seeks to ask is: To what extent have the ordinary citizens benefited from equality laws? All have equal rights.

A re dumeleng gore ge e le melao re e ngwadile, e phasitše. Dipholisi le tšona re di dirile, ke tše botse. Se se re šaletšego ke gore melao ye e phethagatšwe le gore mananeo a rena a fetole maphelo a batho bao ba sa gateletšwego. Mohlala ke bašomi le badudi ba mo dipolaseng.

Re phasišitše Extension of Security of Tenure le Labour Tenants Act. Melao ye e fokoditše bogale bja boradipolase go kgatelelo yeo ba bego ba e dira go bašomedi ba bona. Le bona bašomi ba a leboga kudu ka gore ga go sa swana le maloba ka mmušo wola wa go buša ka lepara la tshipi.

Seo ke ratago go se bontšha Ntlo ye ke gore go sa na le bomaganagobušwa mo dipolaseng tša bašweu bao ba sa lebeletšego go ja ga bona feela empa matsogo a bašomi ao a dirago dijo tše ba sena taba le wona. Bona ba ntše bare “lehono go phala mabaane, lehono go tla phalwa ke ka moso!” Se se ra gore le ge ebile re gatelelwa ba sa nale tshepo ya gore diphetogo di tla ba gona. Feela se se ra gore ena re eme ka maoto re leke gore re hlabolle maphelo a bona.

Re swanetše go thiba mašobana ao boradipolasa ba a šomišago go gatelela bašomi ba le badudi mo molawaneng wo wa rena wa ESTA le Labour Tenants. Re kwa bohloko ge re bona bomma le makgarebjana ba namela dilori ka iri ya bohlano mo mesong, ba lala ba boa masego ka boiri ya sewai, ba nameditswe dilori tseo di sego tsa apeswa ditente le nakong tsa marega. (Translation of Sepedi paragraphs follows.)

[Let us acknowledge that we have Acts and that they have been passed. We also have wonderful policies that we need to make sure are implemented, and that our programmes manage to change the lives of people who are oppressed, especially those who work and live on the farms. The Extension of Security of Tenure Act and the Land Reform (Labour Tenants) Act have been passed. These Acts have decreased the amount of cruelty that the farmers were displaying towards their employees. Employees are very grateful, because things are different compared to what they were during the apartheid era.

I would like to point out that there are still hard-headed white farmers who only care about themselves regardless of what circumstances their employees are in. They keep saying, ‘today is much better than yesterday and tomorrow will be better than today’. It means that even if they are oppressed today, they are hopeful about tomorrow and that things will change for the better. This means though that we should do everything in our power to make sure that their lives are improved.

We must close all the little gaps in the Extension of Security Tenure Act and the Land Reform (Labour Tenants) Act that the farmers use to abuse the employees and residents. It hurts a lot to see old and young women getting into the lorries at five o’clock on a winter’s morning, and then come back as late as eight o’clock, when the lorries don’t even have canopies.]

Some of them say that they only see their kids on Saturdays and Sundays. On Mondays to Fridays they find them sleeping already, and in the mornings they leave before they wake up.

Hon Minister, I couldn’t agree with you more when you said:

The major priority areas of land reform include the disposal of state land, the increasing of the pace of delivery for Land Redistribution for Agricultural Development (LRAD) and continued focus on vulnerable groups such as labour tenants, farmworkers, women and youths.

I sometimes feel that we need unobtrusive officials from our department to gain access to these farms so that they can monitor the living conditions of these farmworkers and labour tenants and make sure that they get security of tenure. Our implementation has to be monitored for speedy delivery.

Another option, Minister, is for us to utilise some available state land close to the very farms where people work and, in collaboration with the Minister of Housing, provide suitable housing and give them title deeds to those homes.

If there is no state land to be utilised, Minister, we have no option. You are left with the last option, namely expropriating adjacent farms so that these workers and tenants can lead independent lives like every other South African. [Applause.] Some of them have asked for places to stay on our communal land, and it is difficult for our “magosi” to reject their request, even when there is not enough land at present for their own community. In conclusion, the portfolio committee appreciates all the good programmes that our department comes up with. All we need is implementation, followed by monitoring – that is our task for 2006. The ANC supports this budget. Land security of tenure for all! The land will be shared amongst all those who work it!

I just want to inform the Minister that on the 24th we were in Durban. Unfortunately you missed us, but the Deputy Chairperson was there. I had a cap of the rural women where Mr Swart and his team actually conducted the workshop. It was fascinating, and I just hope that we will proceed. We have tied a partnership with the National Movement of Rural Women, which Mam Lydia leads. I thank you. [Applause.]

Mr P J NEFOLOVHODWE: Chairperson, the literature on poverty, basic needs and human development generally assumes that decision-makers and those responsible for implementing agricultural poverty-alleviation measures have a fair amount of knowledge about the problem involved.

The slow pace of implementing land reform programmes, especially restitution in rural areas, confirms this view and has become an issue of concern to Azapo. The willing-seller, willing-buyer approach has also been identified by the majority of our people as a major obstacle to the resolution of the land question in our country. Added to this concern, is also the issue of landownership by foreigners.

On all these issues Azapo has time and again stated that even if the present land reform, land redistribution and land restitution processes were to be completed, the rich - especially whites - would still own most of the land and the struggle for land would continue.

Azapo believes that landownership patterns should be addressed in different ways than the traditional willing-seller, willing-buyer approach that has thus far characterised government land reform programmes. Equal access to land should become a reality and should not depend on the whims of landowners.

Azapo believes that we should never allow a situation in which foreigners own land, when the poor have no land on which to build their houses or land on which to engage in productive activities. [Applause.]

In his book Rural Development: Putting the Last First, Robert Chambers came to the conclusion that efforts to counter poverty, particularly in rural areas, are undermined from the outset by lack of knowledge regarding the nature and scale of the problem on the part of those whose task it is to alleviate poverty.

According to Chambers, neither policy-makers nor professionals have a proper understanding of rural poverty, and their direct rural experience is limited to brief and hurried visits and a tendency to visit the most accessible parts of the rural areas.

In most cases, when we go on our normal visits as parliamentarians, we visit the most accessible areas, because that is where we can go with cars. Therefore, we lack the knowledge of knowing exactly what rural poverty is. Azapo supports this Budget Vote. [Applause.]

Mr S SIMMONS: Chairperson, in the department’s strategic plan of March 2005 the hon Minister said, and I quote:

For restitution it was decided that a special commission, the Commission on Restitution for Land Rights, and a special court, the Land Claims Court, be set up to ensure that the restitution process has the necessary institutional foundation upon which claims can be implemented within a specific timeframe.

The government has since made a decision to settle all outstanding restitution claims in the next three years, in order to bring about certainty and therefore stability in the economy as far as potential land claims are concerned. By 28 February 2005 we had delivered over three million hectares of land through all programmes of land reform.

Ek wil egter vandag spesifiek verwys na die gesukkel die afgelope tyd met grondhervorming in die Limpopo-provinsie. Dit gaan beroerd op ’n eens vrugbare en produktiewe plaas, een van die eerstes in die provinsie. Hierdie plaas is ingevolge die grondhervormingsbeleid aan opkomende boere gegee. Weens ’n oormag van probleme word tans niks geproduseer nie.

Die plaas is destyds vir R2 miljoen van die vorige eienaar gekoop. Die nuwe kollektiewe eienaarskap bestaan uit 143 mense. Byna al die nuwe eienaars het padgegee en woon nou in plakkerskampe en die departement beoog om ’n verdere 71 plase terug te neem vir soortgelyke redes. (Translation of Afrikaans paragraph follows.)

[Today I would, however, like to refer specifically to the recent hassles with land reform in the Limpopo Province. What was once a fertile and productive farm, one of the first in the province, is now in a state of shambles and misery. This farm had been handed over to emerging farmers in accordance with the land reform policy. Currently, due to a predominance of problems, nothing is produced on the farm.

At the time, the farm was bought from its former owner for R2 million. The new collective ownership consists of 143 persons. Nearly all the new owners have moved off and are now living in squatter camps and the department envisages repossessing a further 71 farms for similar reasons.] As far as the Limpopo province is concerned, common sense tells me that land allocation, especially that of agricultural land, suffers grave deficiencies. This situation has worsened through the absence of an effective and efficient post-allocation support system to new owners.

This presents the department with the challenge of structuring its budget in such a way that these owners are adequately supported. In practical terms, this means that the new owners are given appropriate training in farm management, which would include operational, production, marketing and HR management.

Heroorweging moet gegee word aan die toekenning van enkele stukke landbougrond aan groot getalle eienaars. [Tyd verstreke.] [Reconsideration has to be given to the allocation of a few pieces of agricultural land to a large number of owners. [Time expired.]]

Mnr A H NEL: Voorsitter, ons het verlede jaar die begrotingspos oor grondsake ondersteun, maar hierdie keer kan ons nie. Ons doen dit veral om drie redes.

Eerstens, geld wat begroot word, word nie bestee nie. Die verskil tussen die aansuiweringsbegroting van Oktober-November en die beraming in Januarie is ten opsigte van restitusie, R800 miljoen en ten opsigte van grondhervorming, R150 miljoen minder. Dit is ’n totale onderbesteding van beskikbare geld van R950 miljoen. Ons het hulp gevra vir meer geld en nou spandeer u departement dit nie.

Is u ingelig oor die probleem? Gaan u aksie neem? Ek kon geen bevredigende antwoorde op my vrae hieroor van die Departement van Grondsake kry nie. Ek kan talle voorbeelde noem waar eisers al twee jaar of meer wag vir uitbetalings. Mense soos mev Colleen Davids en Anita Benjamin van Kaapstad. Hulle vra tereg hoekom hulle moet instaan vir die verlies van koopkrag van hierdie uitbetalings en dit terwyl daar geld beskikbaar is.

Tweedens is daar die oneffektiewe administrasie. Gewone onbevoegdheid speel ’n groot rol by sommige. Onnodige rompslomp en die nie-nakoming van wetlike voorskrifte is van die grootste probleme. Is u ingelig hieroor? U adjunk, die agb Dirk du Toit ís blykbaar, want hy sê – en ek haal aan: “We have many problems on the administrative level.” Miskien moet die Adjunkminister ophou filosofeer en aandag gee aan die oplossing van hierdie probleme. Kom ek gee ’n paar voorbeelde.

Mnr Engelbrecht van Buffelshoek, Lydenburg is ’n gewillige verkoper en het die departement se aanbod alreeds in 2004 aanvaar. Hy is vandag nog nie betaal nie. Eers is vir hom gesê dat die gemeenskap nie wil teken nie. Toe weer was daar ’n dispuut tussen lede van die gemeenskap.

Die feit is: Mnr Engelbrecht verkoop nie aan die gemeenskap nie; hy verkoop aan die staat. Die amptenaar met wie ek gepraat het, het erken dat die kommissie se probleme met die spesifieke gemeenskap nie mnr Engelbrecht hoef te affekteer nie. Tog word ’n koopkontrak eers ’n jaar later aan hom besorg.

Nog is dit einde nie. Die koopkontrak is veertien dae gelede teruggetrek, want, volgens die nuwe kommissaris in Mpumalanga, voldoen dit nie aan sy standaarde nie. En wie was sy voorganger? Mnr Tozi Gwanya, die hoofkommissaris wat waargeneem het.

’n Ander voorbeeld is die eis van die Nyati’s op die grond aangrensend aan die Addo-olifantpark wat aan die Botha’s behoort. Daar is geen probleem met die eis nie. Die Botha’s erken die eis. Albei partye het groot probleme met die amptenare van restitusie. Hulle sê dat tussen die Nyati’s en die Botha’s was daar sedert 2002 geen onwillige party nie. Dit is steeds nie afgehandel nie.

Dan is daar CLARA (Commercial Land Rights Act). Dit het sewe jaar geneem voor die wet aanvaar is. Dit is nou twee jaar later en al wat ons het, is dat daar volgende jaar ’n implementeringsplan op die tafel gaan wees. Teen hierdie spoed sal daar oor 30 jaar nog nie aan die belangrike vereistes van die wet naamlik besitreg en die beskerming daarvan, aandag gegee en erkenning wees nie. Dit is totaal onaanvaarbaar.

Op my vraag oor koördinering en samewerking tussen u departemente het die Direkteur-Generaal van Landbou erken dat dit ’n probleem is, op die hoogste vlakke en op provinsiale vlak. Is dit DG’s, die LUR’e en die onbevoegte amptenare se skuld? Wie moet die uiteindelike verantwoordelikheid hiervoor neem?

Dit is slegs ’n paar voorbeelde van swak en onvoldoende administrasie. Dit veroorsaak oneindige frustrasie by beide eisers en grondeienaars, asook by baie goeie en welwillende amptenare. Die probleme het nie die afgelope jaar ontstaan nie. Hulle is ook nie onoplosbaar nie. Dit is net die politieke wil om dit aan te spreek wat ontbreek.

Derdens is daar die onverantwoordelike uitsprake van senior amptenare oor grondbelasting, die wegdoen met die vrywillige basis van verkope, beperkings op grondbesit en aanvalle op buitelanders oor grondbesit.

Die negatiwiteit wat hierdeur geskep word, breek die welwillendheid af van mense wat eintlik as vennote en vriende beskou moet word. Daar is baie welwillendheid onder grondeienaars ten opsigte van grondhervorming. Verlede jaar by AgriSA se kongres het elke provinsie met ’n plan vorendag gekom hoe om grondhervorming te versnel en toe te sien dat dit volhoubaar benut word. Grondeienaars verskil nie oor die beginsel dat grond beter verdeel moet word nie. Daar is egter wel kritiek op sekere metodes en ongegronde uitsprake. Ek sal graag wil hê die Minister moet ’n bietjie uitbrei oor die uitspraak van haar amptenare oor die beperkings op grondbesit, die sogenaamde “land ceilings”. Die regering moedig mense aan om aan die ekonomie deel te neem en hulle potensiaal te ontwikkel.

Daar is geen beperking op die entrepreneurskap van ’n Patrice Motsepe om meer as een myn te besit nie. Daar is geen beperking op ’n Tokyo Sexwale om eiendomme te ontwikkel, myne te koop, ensovoorts nie. Daar is geen beperking op ’n Ramaphosa om koerante en ’n casino te besit nie, behalwe ander markspelers wat hom kan uitbie.

Maar arme Sipho Didiza of Klein David Dali wat wil boer kan nie sy volle potensiaal gebruik nie, want hy moet beperk word tot een plaas. Is dit die pad waarop u die landbou in hierdie land wil lei? Minister, u is die politieke hoof en moet die verantwoordelikheid dra vir hierdie probleme. Tot tyd en wyl ons kan sien dat dit u erns is om die probleme in u departement en in die landbou in die algemeen aan te spreek, sal ons nie hierdie twee poste ondersteun nie. Baie dankie. [Applous.] (Translation of Afrikaans speech follows.)

[Mr A H Nel: Chairperson last year we supported the Budget Vote on Land Affairs, but this time we cannot. We are doing so specifically for three reasons.

Firstly, money that has been budgeted for is not spent. The difference between the adjustments appropriation of October-November and the estimate in January is R800 million and R150 million less with regard to restitution and land reform respectively. This is a total underspending of available money of R950 million. We asked for more money and now your department is not spending it.

Are you informed about this problem? Are you going to take any action? I did not get a satisfactory answer to my questions about this from the Department of Land Affairs. I can list many examples of where claimants have been waiting for two years or more for their payouts. Examples are people like Mrs Colleen Davids and Anita Benjamin of Cape Town. They are asking, and rightly so, why they should stand in for the loss of buying power from these payouts while money is available.

Secondly there is the ineffective administration. Ordinary incompetence plays a big role in some. Unnecessary fuss and the noncompliance to legal prescriptions are of the biggest problems. Are you informed about this? Your deputy, the hon Dirk du Toit is apparently, because he said and I quote: “We have many problems on the administrative level.” Maybe the Deputy Minister should stop philosophising and attend to solving these problems. Let me give some examples.

Mr Engelbrecht from Buffelshoek, Lydenburg is a willing seller and already accepted the offer from the department in 2004. Until today he has not received any payment. At first they told him that the community does not want to sign. After that there was a dispute amongst members of the community.

The fact is: Mr Engelbrecht is not selling to the community, but to the state. The official that I spoke to admitted that the commission’s problems with this specific community should not affect Mr Engelbrecht. However, a lease contract was only handed to him after a year.

Still the end is not in sight. The contract of sale was withdrawn fourteen days ago, because, according to the new commissioner in Mpumalanga, it did not meet his standards. And who was his predecessor? Mr Tozi Gwanya, the acting head commissioner.

Another example is the claim of the Nyatis on the ground adjacent to the Addo Elephant Park that belongs to the Bothas. There is no problem with this claim. The Botha’s acknowledges the claim. Both parties have experienced problems with restitution officials. They say that since 2002 there has been no unwilling party between the Nyatis and the Bothas. It still has not been settled.

Then there is CLARA (Communal Land Rights Act). It took seven years before this Act was accepted. It is now two years later and the only thing we have, is that there will be an implementation plan on the table for next year. At this pace, within 30 years no attention and recognition would have been given to the important pre-requisites of the law, namely tenure and the protection thereof. This is totally unacceptable.

To my question regarding co-ordination and co-operation between your departments the Director-General of Agriculture admitted that it is a problem, at the highest and at provincial level. Is it the fault of the DGs, the MECs and the incompetent officials? Who has to take the ultimate responsibility for this?

These are only a few examples of poor and insufficient administration. It causes endless frustration both with claimants and landowners, as well as with very good and willing officials. The problems did not develop in the past year. They are also not unsolvable. It is only the political will to address it that is lacking.

Thirdly there are the irresponsible statements of senior members about land tax, the elimination of voluntary selling, limitations on landownership and the attack on foreigners over landownership.

The negativity created by this breaks down the goodwill of people who should be seen as partners and friends. There is a lot of goodwill amongst landowners with regard to land reform. Last year at the AgriSA congress each province came with a plan of how to accelerate land reform and to ensure that it is being used in a sustainable manner. Landowners do not differ on the principle that land must be better shared. There is, however, criticism regarding certain methods and ungrounded statements.

I would like the Minister to elaborate on the statements of her officials on the limitations on landownership, the so-called “land ceilings”. The government encourages people to take part in the economy and to develop their potential.

There is no limit on the entrepreneurship of a Patrice Motsepe to be the owner of more than one mine. There is no limit on Tokyo Sexwale to develop property, buy mines, etc. There is no limitation on Ramaphosa to be the owner of newspapers and a casino, except for other market players that can bid him out.

But poor Sipho Didiza or little David Dali who wants to farm cannot use his full potential, because he is limited to one farm. Is it along this road that you want to take agriculture in this country? Minister, you are the political head and should take responsibility for these problems. Until we can see that you are serious about addressing the problems in your department and in agriculture in general, we will not support these two Votes. Thank you very much. [Applause.]]

Mnr S ABRAM: Mnr die Voorsitter, vandag is beter as gister, môre sal nog beter wees as vandag. Ek wil net graag vir die agb lid Nel sê dat hy nou baie dinge hier kwytgeraak het, en ek is daarvan oortuig dat baie van die goed wat hy hier gesê het, hy administratief met die departement of selfs met die ministerie kon opgeneem het.

Ek is daarvan oortuig dat die deure van die Minister en die Adjunkminister altyd oop is, en dat hulle daar kon aangeklop het. Maar, as die agb lid Nel sê dat daar baie vrywillige verkopers in die land is, dan wil ek net daarop wys dat … (Translation of Afrikaans paragraphs follows.)

[Mr S ABRAM: Mr Chairman, today is better than yesterday, and tomorrow will be even better than today. I would just like to tell hon Nel that he has now said a lot of things here and I am convinced that many of the things that he said here, could have been taken up administratively with the department or even with the Ministry.

I am convinced that the doors of the Minister and the Deputy Minister are always open and that he could have asked them for assistance. But, if the hon Nel says that there are many willing sellers in the country then I just want to point out …]

… when you talk about the so-called concept of willing buyer and willing seller, you must remember that, in the South African experience in the past 11 years with the implementation of land and agrarian reform programmes, the white landowners have had the latitude to determine the price that suited them, regardless of the buyer’s ability to enter into transactions regarding the land in question. [Applause.] [Interjections.]

They, the white farmers, exercise the veto power over the beneficiaries of land and agrarian reform, because the latter are powerless. Although they are supported by the state in their endeavours, they cannot and will not exercise the veto power that is wielded by the white commercial farmers.

The willing sellers as private landowners not only have the choice of not selling to the willing buyers, but in the context of the willing-buyer, willing-seller principle they are free to sell to the highest bidder or buyer of their choice. Thus the landowners can actively avoid offering their land for sale for land reform purposes, say, for example on racist grounds, and still dispose of their land on the open market.

I think that the hon Nel needs to be reminded of this - that those that pay the piper can call the tune and, in this case, it is the white landowner.

Die agb Kraai van Niekerk het onder andere gesê dat betrek moet word in die hele proses van ontwikkeling en hervorming en dies meer. Ek wil net die agb lid daarvan herinner dat landbou-organisasies, soos AgriSA en Nafu, heerlik saamwerk met die regering volgens die sektorplan. Nou onstaan daar ’n vraag by my: Wat is die probleem, want die agb lid sê die welwillendheid van boere vervaag? (Translation of Afrikaans paragraph follows.)

[The hon Kraai van Niekerk said among other things that farmers should become involved in the whole process of development and reform and so on. I would just like to remind the hon member that agricultural organisations such as AgriSA and Nafu are happily collaborating with the government according to the sector plan. Now the question that comes to mind is: What is the problem, because the hon member says the goodwill of the farmers are fading?]

He goes further and says that we are busy squandering the goodwill of scores of farmers, but these farmers are working through their organisations, with the state in terms of the sector plan. I cannot understand where that argument comes from.

But then, Sir, the hon member argues about the fact that agricultural income is dropping. Now let me remind him of something. Yes, Sir, last year the price of maize was extremely low, but then, Sir, many farmers decided that they were going to give the maize to their animals to fatten them up. The returns for beef, mutton and poultry were high and, in fact, they are even higher now.

On average, net farm income over the past five years has increased from R11 billion to R17 billion. Investments in property and farms have otherwise increased substantially, which is borne out by current high land prices.

May I remind my hon friends on this side that this government’s policies have helped and contributed towards increasing the number of net worth dollar millionaires in this country to 37 000, and I know that a significant number of them are your supporters.

The establishment of feed lots in areas where new beef cattle breeders are located will add value to the weaners they breed and will also benefit the economy of the surrounding areas, and so, too, will goat breeding. The portfolio committee had, on numerous occasions, promoted the idea of feed lots when interacting with the department, and this needs to be pursued further.

The hon Minister should also seriously consider the promotion of the breeding of dual-purpose sheep for wool and mutton production. During one of our oversight visits, we noted the involvement of the National Wool Growers Association in some projects in the Free State and Eastern Cape.

However, livestock health problems can prevent farmers from achieving optimal agricultural production. Livestock production relies heavily on the availability of accessible, efficient and quality animal health advisory services. Many communities have no such access to veterinary services, resulting in reduced productivity, diseases and the death of livestock.

The solution lies in farmers, especially small-scale farmers, being able to recognise, prevent and treat their livestock so that they are less dependent on outside assistance and can have healthy and productive animals.

Although the use of adequately trained nonveterinary personnel in South Africa is still highly contentious, it might be the only short-term solution to the shortage of veterinarians and the lack of access for new farmers, as long as the activities of such personnel, including their training equipment, technical support and work, are controlled and monitored by state veterinarians.

We therefore need to have community-based animal health workers and animal health technicians who can, amongst other things, do the following tasks: Mouth-dosing, castration of animals, injection techniques, techniques of handling, storage of vaccines, etc, including artificial insemination.

The critical challenges facing veterinary services so that South Africa can have accessible, efficient and quality animal health systems for commercial and new farmers, are the following: The differences in the quality, nature and accessibility of vet services available to farmers, the lack of human resources, infrastructure, laboratory apparatus and support staff; competition between national and provinces and within provinces on recruiting staff, and unco-ordinated recruitment policies.

The Department of Agriculture and entities such as the Onderstepoort Veterinary Institute and the Agricultural Research Council must ensure that new farmers benefit from these services by providing basic training and information on animal health for unemployed young people, who will be able to provide basic animal health services to communities in the rural areas.

Land Redistribution for Agricultural Development grants are an integral part of the activities of the department. According to their statistics, LRAD, which is the short word for what I just have said, has delivered 72 687 hectares of land to 5 109 beneficiaries. However, there are challenges which need to be addressed urgently so as to ensure that those who are to benefit from the programme are, in fact, able to do so with the minimum of hitches.

For the information of hon members, an LRAD grant is a nonrefundable form of funding by government in order for prospective farmers to acquire land. Some of these challenges are the lengthy period it takes for the evaluation and, in principle, approval of grants. In some instances, it takes months if not years, because the process is too long and cumbersome, and more often results in aspiring beneficiaries becoming frustrated.

Community members often approach our constituency offices for assistance in obtaining LRAD funding. This has been difficult as there is often a lack of communication from regional and provincial land affairs offices, and often the time taken by these offices to initiate the process is too long.

Communities that identify land enter into an agreement with the seller, in terms of which there is a 90-day period within which to provide guarantees, but, by the time the process really gets going, the 90 days are over, the landowner has then negotiated the sale on the open market, the communities are left disappointed and frustrated, and we fall short of our target of transferring 30% of commercial agricultural land by 2014.

Another problem, sir, are the soaring land prices. Three to four years ago the going rate for farmland was calculated in hundreds of rand per hectare. It is now in the thousands.

En so het ons gesorg dat jul ondersteuners miljoenêrs word. [And thus we saw to it that your supporters become millionaires.]

If one takes grazing land, with a carrying capacity of one large animal per four hectares on the highveld, one will probably pay around R3 000 per hectare, and the price of a good breeding cow is around R5 000. This equates to a capital input of R17 000 and that without even calculating other costs like winter feed, vets, medication, labour, interest, bulls, etc. The average gross return for a 200-kilogram weaner at R10 per kilo will be R2 000 and there is no guarantee that the cow will calve annually.

LRAD was launched in 2001 and the agricultural landscape has undergone many changes. We therefore call on the Minister and the department to consider adapting the amount of the grant, so as to cater for the challenge posed by soaring land prices.

In the very short time that I now have available, I would just like to say that with respect to the so-called willing-seller, willing- buyer concept, the Constitution is quite clear about the use of expropriation in the public interest. However, there seems to be an apparent contradiction between the Constitution and the ancient Expropriation Act of 1975, in the sense that section 12(1) of the latter defines compensation as being the amount which the property would achieve if sold on the open market, as between willing buyer and willing seller.

If there is an open market, compensation is the replacement cost of improvements and not the land, nor is it determined in any suitable manner. The Expropriation Act is not aligned to our Constitution. Hence, the process of replacing it with a new expropriation Act. We request the hon Minister to press for the finalisation of the amending Bill as a matter of extreme urgency, so that the parliamentary processes can be followed for its eventual approval. However, it is important to note that where the state uses expropriation to meet the imperatives of section 25(4) of the Constitution, the strength of expropriation lies in its threat. If the expropriation mechanism is used judiciously, the message that the state is serious about expediting land and agrarian reform programmes and is no longer prepared to indulge in unjustifiably prolonged negotiations, will be quite clear and unambiguous.

Hon Minister, I also wish to make the appeal where monies have been designated for use for certain programmes by provinces, that the provinces be given some latitude, and that where there are unspent funds that they be cross-transferred to other activities of the province as designated by national competency. In this way, we will not have unspent funds, and we will probably find that these funds are used judiciously for the promotion of the development of agriculture within those communities that require it most.

In conclusion, I am convinced that the hon van Niekerk is not really serious about land reform, land redistribution and land restitution, and that he would like to see the ownership of large farms by white owners being sacrosanct and untouchable, and not available for use by people who need them most. Thank you very much, Chairperson. [Applause.] The MINISTER FOR AGRICULTURE AND LAND AFFAIRS: Aa! [Greetings!] Chairperson, Deputy President, vhathomphei mirado ya Buthano la Lushaka [hon members of the National Assembly], inala ifikile, asivuneni [the period of abundance has arrived, let us reap].

Ndi tshifhinga tsha khano khulu, kha ri kane. [The period of abundance has arrived; let us reap.]

In response to the debate, I once again would like to quote the hon Van Niekerk when he tabled his budget on 13 September 1994. It was on a Tuesday, when he said (Hansard 1994, col 2575):

With a view to linking agriculture’s functions to the RDP, the Department of Agriculture will support the Reconstruction and Development Programme with respect to the establishment of new farmers, participate in land reform actions, protect the environment, develop human resources, recognise farmworkers’ rights by enlightening farmers and workers regarding their responsibilities towards each other, and develop a sound regional policy for all.

This was said in 1994, when the hon Van Niekerk was the Minister of Agriculture. In the same debate in 1994, the now member of the provincial legislature in Mpumalanga, Mr Ginindza, had this to say, and I quote (Hansard 1994, col 2609):

The RDP, amongst other things, means land restitution and restoration. We need that land back for agriculture and residential purposes. Through the restoration of land ownership rights, we want to eliminate poverty, landlessness, homelessness and frustration, as well as starvation and hunger in particular.

We want to own land our forefathers owned before our country was colonised. As described, our agricultural land was taken away by a seizure of power, and we in turn have to organise a seizure of power and take the land that was taken away by the forces of apartheid.

[Applause.]

I mention these two statements deliberately, because in some way both of them remind us of what we committed ourselves to doing early in 1994. The statements show, however, that maybe we had a different interpretation of the RDP. Maybe we understood what it wanted, but going forward in its execution we started to wonder whether we had to accept this policy indeed.

I want to say that what the hon Van Niekerk committed us to doing as government, as Minister of Agriculture in 1994, we have indeed taken further and implemented. We have executed land reform, albeit with the challenges that all members have highlighted. We have established new farmers, as former Minister Van Niekerk then said. We have participated in land reform actions. Through the LandCare Programme we have protected the natural environment. We have continued to develop human resources, a point that hon Nkuna has articulated so well at this podium. Yes, we have recognised the farmworkers’ rights, and we have enlightened farmers and workers regarding their responsibilities to each other. That is why we had to execute the redetermination of farmworkers’ conditions. Yes, we have developed a sound regional policy for all.

Clearly, if we go back to those statements, as articulated by hon Ginindza and hon Van Niekerk, inherent in them was that there was no quick fix. There were going to be challenges in dealing with the legacy of our past.

Indeed, there are contradictions, because when we said, as articulated by the hon Van Niekerk then, we would participate in land reform, what that actually meant was that in the process of implementation there would be a transfer of ownership from those who have to those who have not. It meant the land size was not going to expand, because it is a natural resource that cannot expand like any other thing. What it meant is that those who had more, had to sacrifice and have less. It is through this process, which members have articulated, that more time was spent in negotiations and deliberations trying to resolve the legacy of our past.

Sometimes I worry, because, rightly so, we are frustrated by the pace of land reform, but, in the same breath, when we start to talk about the need for implementing expropriation, we are equally worried. I say to myself, “What is the best instrument?” [Interjections.] I wouldn’t rush to say so. But the reality is that we have to contend with the challenges at hand. Negotiations, by their very nature, are a give and take. They don’t get easier.

Hon Groenewald, you have raised the matter of Levubu. Indeed, it took time. Members of the provincial legislature of Limpopo would know. When I visited Levubu, as a way of intervening in that problem, some of the community members and some of the landowners, albeit the security services, came armed to the meeting – clearly saying that they could not accept that process. I was calm. I asked the community members to be calm; I asked all of us to negotiate to find a settlement, no matter how painful the situation was.

Negotiations in that meeting took almost four hours. At the end of that process, half of the members agreed to the settlement. The first phase of that land settlement has been concluded. The second phase, as you rightly said, has not been concluded. Some farmers have come back indicating, in terms of some of the offers they made – taking into consideration the time

• they appeal to government to re-evaluate. As you correctly said, that is why there has been a re-evaluation for the third time.

I have used this example of Levubu, because it must say to us that the challenge of dealing with land reform, particularly regarding the course of negotiation that we have chosen as a country – of negotiation, of allowing a process of willing buyer, willing seller – cannot, by its very nature, be as fast. I think we have to be humble enough to acknowledge that this process will have its own pains.

So as we reflect on new mechanisms - and as we said in the Land Summit we will do certain things, ourselves as government, in order to improve our own capacity to be able to fast-track some of these processes - it is also true that some of our partners on the other side must do the same.

I want to say to the hon Kraai van Niekerk that extension has not gone out of the window. There might have been challenges. I am sure that me and you, and maybe few hon members here know, when there was a devolution of certain functions to the provinces, we acknowledged that there was going to be a problem of co-ordination. I think we should accept that the challenge of our own governance, in terms of concurrent powers, is inherent with problems, because the MECs also have legislative power.

We added further, in terms of finance, that once funds had been transferred to provinces, provinces had the latitude to spend. In order to reverse that, there are certain things you have to do. Even if you want to implement section 100, you can’t do it willy-nilly. Hence, this government agreed that we needed to have legislation to strengthen that co-ordination, so that the concurrent governance system that South Africa has decided on can support the implementation of our programmes.

I am raising these things because, indeed, they are true. As we are critical of the problems in this sector, we also need to be mindful of steps that have been taken to correct them. I also want to say, hon Van Niekerk, that I am happy as a Minister for Agriculture and Land Affairs – as is my Deputy Minister - because the members in the gallery reflect our partners.

They are members who come from the Agribusiness Chamber, members who come from agricultural local associations and agricultural unions – both black and white - who said, “We are willing to work with government in the land sector and in agricultural development, because the success of this programme offers benefits to all, not to a few.”

So, I am not very worried. I know the journey might be long. But the commitment to the partnership has not only been in word, but in action in terms of what those farmers at local level have done in holding each other’s hand, particularly those who are new, so that they succeed.

It is important for us to remember how we, as South Africa, maybe in the first phase that my Deputy Minister was talking about, dealt with the poor white problem in this country. In the 1930s, when the then South African government decided to have the Carnegie Commission to investigate what could be done to deal with the poor white problem, one of the instruments of dealing with that problem was precisely land reform – in the first phase, as Dirk said.

I think, if we have to be honest, if we can just go back to that phase, it never took those white farmers who were put through that programme 10 years to succeed. It took them more years. Some of them had to be asked to exit, because they didn’t make it. Some of them had to be supported and nursed through like children learning to walk. I think we need to afford the same to the new black farmers in this country, if we want to complete the third agricultural revolution, as the Deputy Minister articulated. [Applause.] That’s precisely what we are doing in Limpopo.

Regarding the 70% of projects that have collapsed that you referred to, MEC Magadzi – I’m sorry that she has left now - is working with our land office in Limpopo. She is going back to those projects to identify those that have failed, those that are still willing, to try to support them and to ask the others nicely to deregister because we don’t want to penalise everybody. We know that, maybe, in 1994 everybody was excited and thought they wanted to farm, but actually they were not interested enough. So we want to give them an opportunity without punishing them.

Hon members, the time may not be enough here, but it is important that we give space to complete this third leg of agrarian revolution, which is now about the black majority of this country who are the African people. If we do so, 20 years from now, when we talk about agriculture’s contribution to the economy, towards Asgisa that is led by the Deputy President, we will not be talking about the dual agricultural sector in this country. We will be talking about about one sector that represents South Africa’s citizens – both black and white, women and men. I thank you. [Applause.]

Debate concluded.

The House adjourned at 17:35. ____

            ANNOUNCEMENTS, TABLINGS AND COMMITTEE REPORTS



                        FRIDAY, 24 MARCH 2006

ANNOUNCEMENTS:

National Assembly

The Speaker

1. Membership of the Assembly a) The following member vacated his seat in the National Assembly with effect from 23 March 2006:

   Lekgoro, M K.

2. Referral to committees of papers tabled

(1)     The following paper is referred to the Joint Committee on
    Ethics and Members’ Interests for consideration:

      a) Report of the Auditor-General on the Declarations of Interest
         by Ministers, Deputy Ministers and Government Employees [RP 19-
         2006].

(2)     The following paper is referred to the Portfolio Committee on
    Public Works for consideration:

    a)  Memorandum  by  the  Minister  of  Public  Works  setting   out
       Particulars of the Building  Programme  for  2006-2007  [RP  25-
       2006].

TABLINGS:

National Assembly and National Council of Provinces

1. The Minister of Finance

   a) Government Notice No 115 published in Government Gazette No 28469 dated 3 February 2006: Determination of the daily allowance in respect of meals and incidental costs for purposes of the Act, 1962 (Act No 58 of 1962).

2. The Minister of Public Works

   a) Strategic Plan of the Department of Public Works for 2006-2010.

3. The Minister of Health

   a) Co-operation Agreement between the Government of the Republic of Tunisia and the Republic of South Africa on Public Health and Medical Sciences, tabled in terms of section 231(3) of the Constitution, 1996.

COMMITTEE REPORTS:

National Assembly

1. First Report of Standing Committee on Public Accounts: Ingonyama Trust Board, dated 18 March 2006:

   The Standing Committee on Public Accounts (SCOPA), having heard and considered evidence on the Annual Report and the Report of the Auditor- General on the financial statements of the Ingonyama Trust Board (Board) for the financial years ending 31 March 2002/03 and 2003/04, tabled in Parliament and refered to it, reports as follows:

2. Inadequate debtors system

   The Committee noted that the Board’s debtor system was inadequate and therefore unable to properly maintain royalty and Permission to Occupy income records. For example, these records did not provide sufficient financial information on the completeness and accuracy of the R3 234 775 debtors’ figure in the annual financial statements. This matter was raised in subsequent annual reports from 1999 to date.

   The Committee was informed during the hearing that debtors’ reconciliations will now be available for review by the auditors as the debtor system is now internally processed.

   The Committee recommends that: a) Data integrity should be improved to enable the Board to provide sufficient information regarding the proper management of debtors; b) It be provided with time frames for the full implementation of the debtor system, within 30 days after the tabling of this resolution; c) Debtors’ reconciliations should be prepared in terms of Treasury Regulation 31.1.2(j); ie weekly; d) It be furnished with the progress report within 30 days after tabling of this resolution regarding outstanding debtors which has been sent final reminders and against which legal action has been taken.

   1. Accounts payable The Committee is concerned about the lack of supporting documentation presented to substantiate surface restoration deposits amounting to R55 800,00.

   The Committee recommends that the Accounting Authority should ensure that: a) Proper controls are in place for record keeping; b) All records are kept for a specific period before being archived as per National Treasury regulations; and c) It be provided with evidence that a thorough investigation has been undertaken in an effort to establish the source of this money, within 30 days after tabling of this report.

   1. Provision

   No provision was created in the financial statements for expenditure, estimated to be in the region of R22 million, and approved by the Board in respect of the Tribal Authorities.

   The Committee recommends that in future, financial statements should reflect all relevant items as prescribed by South African Statements of Generally Recognised Accounting Practise (GRAP) in order to have a clear picture of the financial affairs of the Trust.

3. Land holdings

   The audit report highlighted some weaknesses in the Board’s land holdings records, for example: ▪ The land holding register does not agree with the financial statements resulting in an unexplained difference of R188 million; ▪ Title deeds to the value of R177 135 684 were not submitted for auditing purposes; ▪ Title deeds for land amounting to R398 092 165 were verified on uncertified copies of title deeds; and ▪ A lack of supporting documentation for an increase of R30 524 700 in the land holdings. The Committee recommends that the Board should: a) Establish accurate records of its land holdings b) Ensure that filing and safekeeping of title deeds meets acceptable standards; c) Obtain certified copies of all title deeds; and d) Furnish a progress report to Parliament based on the issues raised in this Report, within 30days after tabling of this report.

4. Cost of Board meetings

   The Committee is also concerned about certain high attendance costs of Board meetings.

   The Committee recommends that the Board should:

   a) Consider reducing costs incurred in respect of board meetings, as these seems to be excessive for a single day visit; and b) Furnish a progress report to Parliament based on the issue raised above.

5. Arrear rates

   The Committee noted with disappointment that the Board has been invoiced over a number of years for municipal rates in respect of land owned by the Board. The Committee further noted that an amount of R88 million has been disclosed in respect of arrear rates, but that it is not clear which portion belongs to the Province and which to the Board.

   The Committee is of the view that the Board seems reluctant to exercise its power by forcing the municipalities in question to provide accurate information.

   The Committee recommends that: a) The Board ensure that proper steps are taken by following up with the relevant ministry in order to identify the legal liability of property rates; b) The Board ensure that negotiations between municipalities and other stakeholders take place to resolve the arrear rates issue – the Board should facilitate this process; c) The Board ensure that title deeds of the land in question are available in order to establish ownership between the Board, the Province and the relevant municipalities; d) The Board ensure that time frames to resolve problems of arrear rates be provided to it within 30 days of the tabling of this Report; and e) The Auditor-General follow up these issues during the next financial year end audit and provide feedback to it on the progress.

   1. Segregation of the accounting duties

   Weaknesses were highlighted in the audit report with regard to separation of duties. The Committee is not aware of any improvements made to address these weaknesses identified.

   The Committee finds the situation unacceptable, as this matter has been reported on for several years and to date the Board has not rectified the situation.

   The Committee recommends that the necessary internal control measures be implemented immediately.

6. Expired contracts

   The Committee noted that the employment contracts for the employees/service providers of the Board could not be provided for audit purposes.

   The Committee further noted with disappointment that the Board could not quantify the extent of the losses which resulted from illegal mining operations by mining contractors whose contracts had expired.

   The Committee is still awaiting replies from the Board, promised during the hearing, with regards to expired contracts, for instance the extent of the losses incurred and number of contracts outstanding as well as the reasons why.

   The Committee recommends that the Accounting Authority ensure that: a) Appropriate and suitable staff is employed for the positions as outlined in the Auditor-General’s report; b) Proper controls over employment contracts and any other internal control weaknesses and non-compliance issues are implemented immediately, monitored and that any discrepancies identified should be timeously followed up.

   The Committee was also informed during the hearing that the Board members contracts would expire at the end of June 2005. The Committee recommends that the new Board is appointed in terms of the laid down procedures.

   1. Internal Audit and Audit Committee

   The report highlighted non-compliance with the PFMA and Treasury Regulations regarding the establishment of internal audit function and the Audit Committee.

   The Committee was informed during the hearing that the Board is attending to these concerns. However, the Committee noted that the appointment of the Audit Committee will be discussed at the next board meeting, on 6 May 2005.

   The Committee recommends that the Accounting Authority urgently ensure that:

   a) It be provided with the minutes of the meeting of the Board where the establishment and appointment of both the internal audit and the audit committee will be discussed, including the relevant timeframe(s); and b) The Corrective steps are taken where the Board has not fully complied with applicable laws and regulations and that the Committee be advised of such corrective steps taken within 30 days after tabling of this report.

   1. Concluding comments

   The core business of the Trust is to manage the land for the material benefit and social well-being of the individual members of the tribes. Although the Trust has a revenue distribution policy in place, it has experienced difficulties in distributing the monies accumulated. The Committee noted that none of the programmes of the Trust deals with the distribution of funds or assist communities to develop business plans or to invest these monies according to the core business of the Trust.

   The Committee recommends that the Trust, in consultation with the traditional authorities and any other bodies involved, ensure that all the underlying reasons that led the Trust not to perform its duties, are resolved and that the Trust reports quarterly to SCOPA on progress made.

   Finally, the Committee wishes to express its general disappointment at the performance of the Board and urges the incoming Board to undertake responsibilities with greater dedication and accountability.

   Report to be considered.

7. Second Report of Standing Committee on Public Accounts: Central Energy Fund and Subsidiaries, dated 18 March 2006:

   The Standing Committee on Public Accounts (SCOPA), having heard and considered evidence on the Report of the Auditor-General on the annual financial statements of the Central Energy Fund (CEF) for the year ended 31 March 2004, (RP 132/2004) tabled in Parliament and referred to it, reports as follows:

8. PetroSA

   The Committee noted that the company has: a. Several offices, of which four are rented and two are owned by PetroSA. The Committee is concerned about the wasteful expenditure incurred by PetroSA as they are renting expensive offices in the Cape Town Waterfront while they own offices in Parow; b. Experienced a drop in production at the Mossel Bay plant which had adverse c. effects on revenue. This was due to a statutory shutdown of the plant for d. maintenance and the breakdown of waste heat boilers on the three methane e. reformer units. f. Internal control weaknesses as reported by the Auditor-General

   The Committee recommends that the Accounting Authority ensures that:

   a. Measures are taken to minimize the loss as result of rental still payable for the Waterfront offices after they have moved to the Parow offices; b. The plant is properly maintained and that contractors are properly assessed and monitored so as to avoid a recurrence of the breakdowns in future; and c. The study of feedstock purchases should be completed before the end of the year, the outcome to be submitted to the Committee.

   The Committee further noted PetroSA’s advance payment /loan amounting to approximately R15 million made to Imvume Management (Pty) Ltd.

   In this regard, the Committee noted that: a. The Auditor-General’s report stated that there were internal control weaknesses at PetroSA; b. PetroSA’s explanation for the advance payment which was according to them within policy, was that Imvume Management (Pty) Ltd was experiencing cash flow problems for that month and was thus unable to pay for a delivery of oil condensate; c. In granting the advance payment, PetroSA was under the impression that Imvume Management (Pty) Ltd needed to pay its employees their end of year remuneration including cash bonuses; d. The decision by PetroSA to deposit the advance payment into a separate bank account to the standard contract account used between PetroSA and Imvume Management (Pty) Ltd was irregular and that PetroSA considered that there was a lapse in terms of monitoring on the part of PetroSA with regard to the decision to pay the advance payment; e. According to PetroSA, they did not undertake a risk assessment before granting the advance payment to Imvume Management; and f. Imvume Management (Pty) Ltd clearly misled PetroSA with regard to the purpose behind its request for an advance payment.

   The Committee recommends that: a) A progress report be made available to SCOPA by PetroSA on the re- payment of the R15 million debt incurred by Imvume Management (Pty) Ltd; b) In future, PetroSA improves its risk assessment and management regarding advance payments and adheres strictly to their own procurement policies;

9. SFF Association

   The audit report highlighted the following: a. Whether SFF is a going concern due to: • a net loss of R72 million (R277 million in 2003); • income generated that may not be sufficient to cover future expenditure of the company due to cessation of commercial activities; b. Non-compliance with the ministerial directive concerning the approved strategic crude oil and petroleum stock policy as approved by Cabinet; and c. Non-compliance with the Companies Act, 1973.

   The Committee recommends that: a) A strategy should be established to ensure that the going concern risk and any other potential future losses are appropriately addressed; b) SCOPA should call on the relevant ministers to engage on the necessity and importance of this and the level at which the stock should be held – pass appropriate resolution in respect thereof; c) Consideration should be given to re-assessing the requirement to comply with the minimum stock level of 14,9 million barrels (strategic stock levels); d) Regarding the ministerial directive, the Board should ensure compliance or take up the issue with the relevant minister to either amend or come to an agreement on how it can be complied with; and e) A register be maintained of all the relevant requirements of the Companies Act, 1973 and this should be regularly reviewed to ensure compliance.

   It was stated that the group works in silos and as a result, PetroSA did not pick up the issue of a previous employee causing fruitless expenditure of R14 million. The Committee therefore recommends that the group should put in place a system of controls to co-ordinate/ manage these types of events.

   1. OPCSA, IGAS and PASA

   The Committee is concerned about the companies in question not being able to continue their operations as going concerns, for example: a) OPCSA incurred a net loss amounting to R8,4 million. The Committee was informed that the OPCSA has been involved in negotiations in order to improve its profit. The negotiations will be concluded at the end of this financial year and a contract will be in place; b) IGAS has not generated any revenue to date and incurred a loss of R3,7 million (same as previous financial year); and c) PASA’s primary income is based on royalties received from PetroSA. There was a decrease in gross revenue due to problems at PetroSA’s manufacturing plant.

   The Committee recommends that: a) OPCSA should develop and implement proper reporting structures in order to comply with the PFMA and Treasury regulations; b) The business plan of OPCSA and IGAS should be provided to SCOPA to show what their plans are to make these entities profitable; c) PASA should provide a progress report to SCOPA on additional revenue sources identified (non-PetroSA).

   1. Dormant companies

   The Committee noted that there were several companies in the CEF group that were dormant. These companies had specific purposes and carried out different mandates. The companies had not yielded the results intended and hence a decision was taken to liquidate all of them.

   The Committee is concerned about the time CEF is taking to liquidate all of these companies as their continued existence might lead to loss of income to the CEF group.

   The Committee recommends that Management should: a) Urgently investigate the profitability of the dormant companies and the process to close down these companies; b) Follow up on progress regarding the deregistration of companies that have been earmarked for closure; and c) Do all in its power to conclude the process in the 2005/06 financial year so as to eliminate further losses.

   1. PETROLEUM AGENCY SA

   A forensic investigation was conducted regarding the awarding of license applications for the Tugela block and compliance with corporate governance requirements. A disciplinary hearing was undertaken and the employee was allowed to go on early retirement.

   The Committee recommends that the Accounting Authority ensure that the investigation referred to above be finalised and that the Committee be furnished with the outcome.

   1. CEF

   Having considered the Auditor-General’s report and the financial statements for the 2003/04 financial year, the Committee recommends that:

   a) Management should investigate the possibility of utilising other options (financial instruments) in order to prevent losses incurred due to the fluctuation of the rand against the dollar; b) Financial statements process be implemented and be received in the required time; c) Ensure oversight from CEF over its subsidiaries to ensure that the necessary dormant companies are closed down and that start-up companies become profitable as soon as possible.

   The report further highlighted various non-compliance issues with the PFMA, Treasury Regulations and the Companies Act, 1973.

   The Committee recommends that control measures should be put in place to detect and correct all instances of non- compliance with best practice, company policies, laws and regulations.

   Report to be considered.

10. Third Report of Standing Committee on Public Accounts: Department of Home Affairs, dated 18 March 2006:

The Standing Committee on Public Accounts (SCOPA), having heard and considered evidence on the Annual Report and the Report of the Auditor- General on the financial statements of the Department of Home Affairs for the financial years ending 31 March 2002/03 and 2003/04, reports as follows:

1. Government Printing Works (GPW)

   (i) Operating Surplus, (page 141, Income Statement) R200, 519 million In terms of Treasury Regulation 19.7.1, an Accounting Officer of a Department operating a trading account is required to declare any operating surplus to National Treasury, and Treasury may decide what should happen with that surplus. However, at the public hearing the Department informed the Committee that no arrangements have been made with Treasury with regard to retention of operating surplus.

The Committee recommends that:

a) The Accounting Officer immediately takes all appropriate steps to comply with the applicable Treasury Regulations and report back to the Committee on steps taken within 60 days after this resolution has been adopted by Parliament. (ii) .Corporatisation process of Government Printing Works

The Committee is concerned at the delay of the corporatisation process of the GPW.

However, the Committee was informed that the Department will be presenting its proposal on the way forward with regard to corporatisation of GPW to the Minister by June 2005.

The Committee therefore recommends that the Accounting Officer:

a) Ensures that this process is finalised as a matter of urgency; and b) Reports on progress made to the Committee within 60 days after this resolution has been adopted by Parliament.

(iii) Management of Debtors (page 137, par. 3.2) The Auditor-General reported lack of effective and efficient steps to collect all the money due to the GPW, compounded by a lack of skilled staff and insufficient management reviews.

The Committee noted progress made with regard to establishment of the Debt Collection Division and filling of the managerial position.

However, the Committee recommends that the Accounting Officer:

a) Ensures that all outstanding debt older than 60 days is collected as a matter of urgency; b) Ensures that the GPW charges interest on overdue accounts; and c) Finalises the skills audit at the GPW and fill the critical positions as soon as possible.

(iv) Supply chain management framework (page 139, par. 5.2.3)

The Auditor-General reported to the Committee that the GPW had not implemented the regulations regarding the framework for supply chain management that requires trading entities to develop and implement an effective and efficient supply chain management system for: ▪ The acquisition of goods and services, and ▪ The disposal and letting of state assets.

The Committee therefore recommends that:

  a) The Accounting Officer complies with section 76(4)(c) of the PFMA
     and ensures that all the requirements of the supply chain
     management framework are implemented.

1. Controls at the Lindela Detention Centre (page 93, par. 3.1)

The Auditor-General reported inadequate financial management controls at Lindela detention centre, and that he could not evaluate the accuracy and validity of the holding expenditure amounting to R95, 9 million. The Committee noted weaknesses in the awarding of contracts where State Tender Board procedures were not followed.

The Committee recommends that the Accounting Officer ensures that:

  a) The Service Level Agreement with the company contracted to provide
     a service is reviewed and that the company complies with the
     conditions of the agreement.
  b) When the contract of Bosasa expires in August 2005, the
     requirements of Tender Board procedures are complied with when
     awarding the contract for the next contract period.

1. Management of Revenue (page 94, par. 3.2)

The Auditor-General reported that regional offices of the Department are responsible for amongst others, the collection, depositing and the capturing onto the Basic Accounting System (BAS) for receipts for revenue generated by the Department for various services rendered. However, due to various logistical constraints BAS was not available to all regional offices and as a result the Department experienced significant backlogs in capturing the receipts onto BAS. For example, at the end of March 2004 unallocated deposits from various regional offices amounted to approximately R32 million.

The Committee therefore recommends that the Accounting Officer urgently ensures that: a) BAS is implemented at all regional offices; b) Revenue is timeously allocated to appropriate accounts; c) Unallocated deposits are cleared as a matter of urgency; and d) Bank reconciliation is performed properly.

1. Internal Audit and Internal Controls (pages 74 and 95)

The Audit Committee reported that the internal audit division was not operating effectively and remained under-resourced. The Auditor General could also not rely on the work of internal audit as only 19 per cent of the unit’s approved annual work plan was executed.

The Committee recommends that the Accounting Officer ensures that:

  a) The lack of capacity is addressed as a matter of urgency;
  b) He complies with all requirements of the PFMA and Treasury
     Regulations relating to internal audit; and
  c) The internal auditors follow-up on management's action plans in
     response to audit findings.
  d) The Department reports back to the Committee on steps taken within
     60 days after this resolution has been adopted by Parliament

Report to be considered.

1. Fourth Report of Standing Committee on Public Accounts: State Information Technology Agency (PTY) LTD (SITA), dated 18 March 2006:

The Standing Committee on Public Accounts (SCOPA), having considered the Annual Reports of SITA for the financial years ending 31 March 2003 and 31 March 2004, the Standing Committee on Public Accounts reports as follows:

1. Attendance of the Board

As the Board was not in attendance at the hearing the Committee would like an explanation with regard to this. The Committee recommends that it responds to all of the below mentioned matters in the 2003-2004 Annual Report to Parliament.

1. Gateway Project (par 4.2, page 41)

The rollout of the Gateway Project, a South African citizen centric project initiated by the Department of Public Service and Administration, was awarded to SITA. In the year under review, the operating and capital expenditure on the project amounted to approximately R77 million.

The Auditor-General reported that SITA’s internal auditors had undertaken a forensic investigation into possible irregularities relating to the Gateway project during the year under review.

During the hearing, the Committee had engaged the Chief Executive Officer of SITA on the matter.

Recommendation:

The Committee recommends that the Board of SITA - as the Accounting Authority - take the following steps:

  a) Ensure the expeditious finalisation of the report on the forensic
     investigation. (The role of all persons involved in the initiation
     and approval of the project should be clarified.)
  b) Institute all appropriate disciplinary procedures and or legal
     action if the forensic audit produce evidence of any negligence or
     wrongdoing.

1. Governance Issues (page 6)

The Committee noted[1] the problems created by the simultaneous appointment of all of the Directors of a Board, or where the full Board’s terms of office expire simultaneously.

Recommendation:

SITA should follow best practice as outlined in Section 5 of the Protocol on Corporate Governance issued by the department of Public Enterprises.

The Committee therefore recommends that the Board institute as a matter of urgency, a system that will ensure continuity at SITA with regard to Board Membership.

1. Service Delivery and Client Relations (page 46, 4th par.)

Numerous complaints have reportedly been received from user-departments regarding perceived poor service delivery by SITA. Poor performance was admitted by SITA on page 46 of the 2004 Annual Report, and it has identified certain key strategic imperatives for improved performance. The Auditor-General reported that he has planned an Information Systems Audit to commence in April 2005 that would reflect on certain service delivery aspects.

Recommendation:

The Committee recommends that SITA should investigate the causes of the complaints from the user-departments and implement measures to improve service delivery as a matter of urgency.

SITA links with Auditor-General on Information System Audit and takes recommendations on board.

1. Special Investigation on Procurement

A review by the Auditor-General of SITA procurement processes revealed a number of instances of non-compliance with SITA Procurement Policy and Procedure when tested against the relevant acts and regulations, such as the SITA Act, the PFMA and the State Tender Board Regulations.

Recommendation:

The Committee recommends to the Board that the Internal Audit: • Make procurement a specific focus area until such time as procurement processes and procedures are at a sufficiently high standard. • A matter such as the implementation of an effective fraud prevention strategy, and the establishment of a fraud hotline also has to be fasttracked. • Quarterly reports in this regard should be reviewed by the Board’s Audit Committee, and should be reported on in its next Annual Report to Parliament.

1. During the hearing a concern was expressed with regard to awarding of performance bonuses. The committee found the performance bonuses awarded at SITA were overly excessive.

The Committee recommends that:

The performance bonuses awarded should be in line with sector norms.

Report to be considered.

1. Fifth Report of Standing Committee on Public Accounts: Trade and Investment South Africa, dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of Trade & Investment South Africa for the year ended 31 March 2005 tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by independence auditors, and trusts that future audit opinions shall be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the accounting authority of Trade & Investment South Africa is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.

Report to be considered.

1. Sixth Report of Standing Committee on Public Accounts: South African National Accreditation System (SANAS), dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the South African National Accreditation System (SANAS) for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Independent Auditors, and trusts that future audit opinions will be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the SANAS is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.

Report to be considered.

1. Seventh Report of Standing Committee on Public Accounts: South African Broadcasting Corporation, dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the South African Broadcasting Corporation Limited (SABC) for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Independent Auditors, and trusts that future audit opinions will be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the SABC is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.

Report to be considered.

1. Eighth Report of Standing Committee on Public Accounts: Onderstepoort Biological Products Ltd, dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the Onderstepoort Biological Products Ltd for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Independent Auditors, and trusts that future audit opinions will be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the Onderstepoort Biological Products Ltd is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.

Report to be considered.

1. Ninth Report of Standing Committee on Public Accounts: Industrial Development Corporation of South Africa Limited, dated 18 March 2006:

   INTRODUCTION

   The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the Industrial Development Corporation of South Africa Limited (IDC) for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the independent auditors, and trusts that future audit opinions shall be equally unqualified.

CONCLUSION

The Committee is of the view that no further interaction with the Industrial Development Corporation of South Africa Limited (IDC) is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.

Report to be considered.

1. Tenth Report of Standing Committee on Public Accounts: Godisa Trust, dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the Godisa Trust for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the independent auditors, and trusts that future audit opinions shall be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the Godisa Trust is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.

Report to be considered.

1. Eleventh Report of Standing Committee on Public Accounts: Financial Services Board, dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Financial Service Board for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor General, and trusts that future audit opinions will be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the South Financial Service Board is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

1. Twelfth Report of Standing Committee on Public Accounts: Development Bank of Southern Africa, dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the Developmental Bank of Southern Africa Limited (DBSA) for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Independent Auditors, and trusts that future audit opinions shall be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the Developmental Bank of Southern Africa Limited is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.

Report to be considered.

1. Thirteenth Report of Standing Committee on Public Accounts: Airports Company South Africa Ltd (ACSA), dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the Airports Company South Africa Ltd (ACSA) for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the independent auditors, and trusts that future audit opinions will be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the ACSA is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.

Report to be considered.

1. Fourteenth Report of Standing Committee on Public Accounts: Accounting Standards Board (ASB), dated 18 March 2006:

INTRODUCTION

 The Standing Committee on Public Accounts, having considered the Annual
 Report and the Report of the  Independent  Auditors  on  the  Financial
 Statements of the Accounting Standard Board (ASB) for  the  year  ended
 31 March 2005, tabled in Parliament and  referred  to  it,  reports  as
 follows:

1. AUDIT OPINION

The Committee noted the unqualified  audit  opinion  expressed  by  the
independent auditors, and trusts that future audit  opinions  shall  be
equally unqualified.

1. CONCLUSION

The Committee is of the view  that  no  further  interaction  with  the
accounting  authority  of  the  Accounting  Standard  Board  (ASB)   is
necessary for the financial year under review.


The Committee therefore awaits the next Annual Report and the Report of
the Independent Auditors.

Report to be considered.

1. Fifteenth Report of Standing Committee on Public Accounts: National Agricultural Marketing Council, dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor General on the Financial Statements of the National Agricultural Marketing Council (NAMAC) for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the NAMAC is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

1. Sixteenth Report of Standing Committee on Public Accounts: Greater St. Lucia Wetland Park, dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Greater St. Lucia Wetland Park for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

1. CONCLUSION

The Committee is of the view that, no further interaction with the Greater St Lucia Wetland Park is necessary for the financial year under review. The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

1. Seventeenth Report of Standing Committee on Public Accounts: South African National Biodiversity Institute (SANB), dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the South African National Biodiversity Institute (SANBI) for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the SANBI is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General. Report to be considered.

1. Eighteenth Report of Standing Committee on Public Accounts: Export Credit Insurance Corporation of South Africa Limited (ECIC), dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the Export Credit Insurance Corporation of South Africa Limited (ECIC) for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the independent auditors, and trusts that future audit opinions shall be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the Export Credit Insurance Corporation of South Africa Limited (ECIC) is necessary for the financial year under review. The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.

Report to be considered.

1. Nineteenth Report of Standing Committee on Public Accounts: Competition Tribunal, dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the Competition Tribunal for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1.AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

2.CONCLUSION

The Committee is of the view that no further interaction with the Competition Tribunal is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General. Report to be considered.

1. Twentieth Report of Standing Committee on Public Accounts: South African National Parks, dated 18 March 2006:

INTRODUCTION The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the South African National Parks for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions shall be equally unqualified.

2. EMPHASIS OF MATTER The Committee noted that South African National Parks during the financial year, controls were not always operating efficiently and effectively as required by section 51 (1) (a) (i) of the PFMA. Management has indicated that they are giving ongoing attention to these matters.

The Committee expects this issue to be addressed as a matter of urgency and will monitor this concern in the next Annual Report.

1. CONCLUSION The Committee is of the view that no further interaction with the South African National Parks is necessary for the financial year under review. The Committee therefore awaits the next Annual Report and the Report of the Auditor-General. Report to be considered.

2. Twenty-First Report of Standing Committee on Public Accounts: South African Bureau of Standards (SABS), dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Auditor-General on the Financial Statements of the South African Bureau of Standards (SABS) for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the Auditor-General, and trusts that future audit opinions will be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the SABS is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Auditor-General.

Report to be considered.

1. Twenty-Second Report of Standing Committee on Public Accounts: South African Tourism, dated 18 March 2006:

INTRODUCTION

The Standing Committee on Public Accounts, having considered the Annual Report and the Report of the Independent Auditors on the Financial Statements of the South African Tourism for the year ended 31 March 2005, tabled in Parliament and referred to it, reports as follows:

1. AUDIT OPINION

The Committee noted the unqualified audit opinion expressed by the independent auditors, and trusts that future audit opinions will be equally unqualified.

1. CONCLUSION

The Committee is of the view that no further interaction with the South African Tourism is necessary for the financial year under review.

The Committee therefore awaits the next Annual Report and the Report of the Independent Auditors.

Report to be considered.

1. Report of the Portfolio Committee on Housing on 2005 Annual Report, dated 15 March 2006:

The Portfolio Committee on Housing Annual Report from January – December 2005, reports as follows:

1. Name of the Committee: Portfolio Committee on Housing Chairperson: Ms ZA Kota-Fredericks Committee Secretary: Ms NM Ntuli

2. Chairperson’s Overview: This has been a watershed year for the Portfolio Committee on Housing. Two most important events took place, firstly; the conference on “Challenges of Fire and Floods in Human Settlements” in which all the relevant stakeholders came together. Secondly, the overseas study visit by the committee to Norway and the Netherlands to learn more about social housing. The committee also had public hearings with eight housing institutions as well as the National Department of Housing.

3. Mandate of the Committee: The mission of the committee is to ensure that Parliament gets value for money spent for the purpose of building houses. The committee will continue to encourage visible housing delivery and adherence to better quality of housing units.

The vision of the committee is to work with all relevant stakeholders willing to participate in the building of houses and assist the department in its constitutional imperative and mandate of providing everyone with an access to adequate housing.

1. List of Public Entities Over Which the Committee Exercises Oversight: 1. National Home Builders’ Registration Council (NHBRC) 2. National Housing Finance Corporation (NHFC) 3. National Urban Construction and Housing Agency (NURCHA) 4. People’s Housing Partnership Trust (PHPT) 5. Rural Housing Loan Fund (RHLF) 6. Servcon Housing Solutions (SERVCON) 7. Social Housing Foundation (SHF) 8. Thubelisha Homes

2. Number of Meetings Held and those Cancelled:
3. Committee meeting was held on 19 January, 2005
4. Committee meeting was held on 9 February, 2005
5. Committee meeting was held on 16 February 2005
6. Committee meeting was held on 1 March 2005
7. Committee meeting which was scheduled for 4 March 2005, was cancelled
8. Committee meeting was held on 9 March 2005
9. Committee meeting was held on 18 May 2005
10. Committee meeting was held on 25 May 2005
11. Committee meeting was held on 27 May 2005
12. Committee meeting was held on 1 June 2005
13. Committee meeting which was scheduled for 22 June 2005, was cancelled
14. Committee meeting was held on 2 August 2005
15. Committee meeting was held on 10 August 2005
16. Committee meeting was held on 16 August 2005
17. Committee meeting was held on 24 August 2005
18. Committee meeting was held on 31 August 2005
19. Committee meeting was held on 14 September 2005
20. Committee meeting was held on 11 October 2005
21. Committee meeting was held on 26 October 2005
22. Committee meeting was held on 9 November 2005

23. Committee meeting was held on 16 November 2005

24. Legislation Referred to the Committee:
25. Prevention of Illegal Eviction from and Unlawful Occupation of Land (PIE) Amendment Bill (B 11-2005) was referred to the committee for consideration and was published in ATC: 7 March 2005. A briefing by the National Department of Housing on the Bill was held on 25 May
    1. Amendments to the Bill were made (please see page 2, point 5, of the Minutes dated: 25 May 2005). An interim report of the Portfolio Committee on the Bill, was published in ATC: 2 November 2005.
26. Papers (International Agreements, Protocols, Reports etc.) Referred to the Committee:
    1. Report and Financial Statements of Thubelisha Homes for 2004/2005, including the Report of the Independent Auditors on the Financial Statements for 2004-2005 (ATC: 5 October 2005).
27. Oversight (Local) Visits: 8.1 The Portfolio Committee undertook an oversight visit to the Western Cape province. The main objectives of the visit was to assess the relief needs in the areas that were affected by the fire disaster and also to give support to the victims of the fire disaster.
    1. The oversight visit was undertaken on 25-26 January 2005.
    2. The delegation was comprised of the following: • Ms ZA Kota ANC (Chairperson) • Mr RJ Tau ANC (Chairperson of the Select Committee on Public Services) • Ms BN Dambuza ANC • Mr DC Mabena ANC • Mr GD Schneemann ANC • Ms NJ Ngele ANC • Ms MM Ramakaba-Lesiea ANC • Mr AC Steyn DA • Ms M Ntuli Committee Secretary • Mr S Makeleni Committee Assistant
    3. The Committee visited the Joe Slovo area in KwaLanga and Khayamnandi in Stellenbosch.
    4. The report was adopted by the committee on 16 August 2005.
    5. The report was published in the ATC: 14 November 2005
28. International Visits:
    1. The Portfolio Committee undertook a study tour to Norway and the Netherlands. The main objectives of the study tour were as follows: • To gain insight into the policy basis for the social and co- operative housing approach in Norway and the Netherlands. • To gain insight into the results achieved through the social housing and co-operative housing approach. • To learn how the international and social co-operative housing approaches relate to and compare with the South African context and policy development approach as well as the roles, functions and responsibilities of the different spheres of government, these, national, provincial and local. • To strengthen parliamentary relations and share experiences on the aspects of social and co-operative housing. 9.2 The study tour was undertaken from 4-18 June 2005. 9.3 The delegation was comprised of the following persons: • Ms ZA Kota ANC (Chairperson) • Ms BN Dambuza ANC • Ms MM Ramakaba-Lesia ANC • Mr GD Schneemann ANC • Mr TS Dodovu ANC • Mr AC Steyn DA • Ms S Sigcau UDM • Ms NM Ntuli Committee Secretary • Mr Brian Moholo Managing Director: Social Housing Foundation • Mr Marlon Abrahams Social Housing Foundation • Ms Odette Crawfton Social Housing Foundation • Mr William Jiyana National Department of Housing • Mr Thloriso Thelejane National Housing Finance Corporation • Ms Mandu Mamatela National Housing Finance Corporation 9.4 The committee visited Oslo in Norway and the Hague in the Netherlands. 9.5 The report was adopted by the committee on 16 August, 2005. 9.6 The report was published in the ATC: 14 November 2005

29. Budget Vote: • The Memorandum on Vote No. 28 “Housing” Main Estimates, 2005-2006 was referred to parliament on 2 March, 2005. • The committee had a briefing on the Budget by the National Department of Housing on 9 March, 2005. • Public hearings on the Budget Vote were held on12-13 April 2005. • The Report on the Public Hearings was adopted by the committee on 16 August, 2005 and is ready to be published in the ATC.

30. Annual Report of the Executive: • The Annual Report 2004/05 of the National Department of Housing was referred to parliament on 30 September 2005. • The National Department of Housing briefed the committee on its Annual Report 2004/05 on 26 October 2005. • The minutes on the briefing were adopted by the committee on 9 November 2005. The National Department of Housing will come back before the Portfolio Committee for another presentation on the Annual Report next year (2006), after which a report will be compiled. • There were no public hearings held on the Annual Report 2004/05.

        12. Other Committee Activities (Briefings, Workshops,
            Conferences):  12.1 The Committee attended the African Ministers’ on Housing and
       Urban Development (AMCHUD) conference in Durban, on 3-4
       February 2005.  12.2 The Committee had a briefing by the Minister of Housing on the
       N2 Gateway Project on 1 March, 2005.  12.3 The Committee organised a conference on “Challenges of Fire and
       Floods in Human Settlements” on 19-20 April, 2005 in
       parliament.  12.4 The Committee attended the North West Provincial and Local
       Government Housing Summit on 6-8 June in Mafikeng, North West.  12.5 The Committee had a briefing by the Institute for Housing of
       South Africa (IHSA) on its activities on 2 August, 2005.  12.6 The Committee had a debriefing by Social Housing Foundation
       (SHF) on 16 August 2005,on the study tour which was undertaken
       by the Portfolio Committee on 4-18 June 2005 to Norway and the
       Netherlands.  12.7 The Committee had a briefing by the Banking Association on the
       Banks’ Proposal on the Low-Income Housing Finance on 24 August
       2005.  12.8 The Committee attended a Housing Indaba conference at the ICC in
       Cape Town, which was hosted by the National Department of
       Housing, on 22-23 September 2005.
    9. The Committee attended an International Housing Conference
       which was hosted by the Institute for Housing of South Africa
       (IHSA) at the ICC in Durban, on 16-19 October 2005.  12.10      The Committee attended an Awards Ceremony which was hosted
       by the National Home Builders’ Registration Council (NHBRC) in
       Gauteng on 26 October, 2005.  12.11      The Committee attended a housing handover ceremony by the
       Habitat for Humanity of South Africa and African Bank, in
       Protea South, Gauteng on 28 October 2005.  12.12      The Committee attended the” Fifth Global Parliamentarians
       on Habitat Forum” held in Rabat, Morocco, on 10-12 November
       2005.
    

31. Budget of the Committee: Budget Allocated to the Committee R525, 406.00 • Expenditure: Catering R37 341.30 Provincial Visits R37 039.20 Overseas Trips R479 188.00 Conferences, Seminars, Workshops 0 Public Hearings 0 _____ BALANCE R553, 568.50 Closing Balance as at 15 March 2006 -R28 152.50

32. Outstanding Matters:
    1. Briefing on the Annual Report of 2005/06 by the National Department of Housing
    2. Deliberations on the PIE Amendment Bill (B 11-2005)
    3. Provincial Visits to the Northern Cape and North West
    4. Appearance before the committee of the Housing MECs from the Eastern Cape and KwaZulu Natal on their housing budget.

15.  Support Staff:
  Committee Secretary:              Ms Mkoti NM Ntuli
  Control Committee Secretary: Ms N Nonkelela
  Committee Assistant:              Ms K Pasiya
  Secretary to Chairperson:         Ms E Scholtz
  Researcher:                  Mr W Manona

1. Formal Adoption of the Report by the Committee Annual Report of the Portfolio Committee on Housing, having been put to the Committee, was adopted by the Committee on 15 March 2006.

                     MONDAY, 27 MARCH 2006
   

ANNOUNCEMENTS

National Assembly

The Speaker

1. Appointment of whip

Ms C Dudley has been appointed as a whip for the smaller parties with
effect from 15 November 2005.

1. Report on Rule amendments to establish Committee on Auditor-General At the meeting of the National Assembly Rules Committee, held on 14 October 2005, it was agreed that a separate standing Committee be established in terms of the Public Audit Act to oversee the functions of the Auditor-General.

   The Subcommittee on the Review of Rules was mandated by the Rules Committee to draft the Rule amendments which would then be presented to the Speaker and circulated to parties and then put directly to the House for adoption.

   The Subcommittee has concluded its consideration of the matter and presented its report to the Speaker. The report has been circulated to parties.

   The following rule amendments are recommended for adoption by the House:

            Part 10A:    Committee on the Auditor-General
   

   Establishment

   208 A There is a Committee on the Auditor-General, established in terms of section 10(3) of the Public Audit Act, 2004.

   Composition

   208 B The Committee on the Auditor-General consists of 13 members or such other number of members as the Speaker may determine with the concurrence of the Rules Committee. Functions and Powers

   208 C (1) The Committee on the Auditor-General must – (a) maintain oversight over the Auditor-General; (b) perform the functions and exercise the other powers as specified in the Public Audit Act, 2004.

      (2)   The Assembly may by resolution assign any other function,
            task or duty to the Committee on the Auditor-General within
            its area of competence.
   
   
      (3)   The Committee on the Auditor-General may not consider –
            (a)   audit reports produced by the Auditor-General;
            (b)   any budget or business plan other than that of the
                Auditor-General.
   

   Decisions

   208 D A question before the Committee on the Auditor-General is decided when a quorum in terms of Rule 133 is present and there is agreement among the majority of members present.

                      TUESDAY, 28 MARCH 2006
   

ANNOUNCEMENTS:

National Assembly and National Council of Provinces The Speaker and the Chairperson

1. Bill passed by Houses – to be submitted to President for assent

 (1)    Bill passed by National Council of Provinces on 28 March 2006:


      a) Additional Adjustments Appropriation Bill (2005/06 Financial
         Year) [B 4 – 2006] (National Assembly – sec 77).

National Assembly

The Speaker

1. Message from National Council of Provinces to National Assembly in respect of Bill

 (1)    Bill amended and passed by National Council of Provinces on 28
    March 2006 and returned for concurrence:


      a) Division of Revenue Bill [B 3B – 2006] (National Assembly –
         sec 76)


    The Bill has been referred to the Portfolio Committee on Finance of
    the National Assembly.

TABLINGS:

National Assembly and National Council of Provinces

1. The Minister of Finance

 a) Government Notice No 177 published in Government Gazette No 28550
    dated 24 February 2006: Fixing of rate per kilometer in respect of
    motor vehicles for the purposes of section 8(1)(b)(ii) and (iii) of
    the Income Tax Act, 1962 (Act No 58 of 1962).

1. The Minister of Correctional Services

 a) Report of the Judicial Inspectorate of Prisons for 2005-2006 [RP 27-
    2006].

COMMITTEE REPORTS:

1. Report of the Portfolio Committee on Public Works (National Assembly) on the oversight visits to the nine provinces dated 7 March 2006: (Reprint)

The Portfolio Committee on Public Works (National Assembly) having conducted oversight visits to the National Department of Public Works (NDPW) and the Provincial Departments of Public Works, municipalities and local communities between February and September 2005, reports as follows:

The structure of this report is as follows:

Glossary Foreword Introduction Findings Overview Oversight visit to Provinces Recommendations Conclusion

GLOSSARY BEE Black Economic Empowerment CBPWP Community-Based Public Works Programme CDW Community Development Workers CIDB Construction Industry Development Board CETA Construction Education and Training Authority CTM City of Tshwane Management CHW Community Health Workers DM District Municipality DORA Division of Revenue Act DPTRW Department of Public Transport, Road and Works EPWP Expanded Public Works Programme EXCO Executive Council ECD Early Childhood Development HCBC Home Community-Based Care IDP Integrated Development Plans IDT Independent Development Trust ILO International Labour Organisation IMDC Integrated Development Management Committee ISRDP Integrated Sustainable Rural Development Programme KZN KwaZulu-Natal LED Local Economic Development MEC Member of Executive Council MFMA Municipal Financial Management Act MIG Municipal Infrastructure Grant MoU Memorandum of Understanding MPC Multi Purpose Centres NDPW National Department of Public Works PEC Provincial Executive Committee PFMA Public Finance Management Act PMIS Property Management Information System PPWD Provincial Public Works Department PSC Provincial Steering Committee PTC Provincial Technical Committee SALGA South African Local Government Association SAWIC South African Women in Construction

FOREWORD

The Portfolio Committee, wishes to extend gratitude to the following: • The National Department of Public Works, for its co-operation and their responsiveness to constructive criticism from the Portfolio Committee and Standing Committee on Public Accounts.

     • The Committee further appreciates  the  immediate  and  positive
       response by the Department to the proposals and  recommendations
       made by the Committee.


     • The Committee notes the appointments of  the  Deputy  Directors-
       General for the EPWP and Asset Management respectively.


     • The Committee observes the Leadership Way Initiative  introduced
       by the  Department  in  an  attempt  to  redress  administrative
       shortcomings of the Department during the year under review.


     •  The  Committee  further  notes  the  improved   financial   and
       accounting systems that were  subsequently  complimented  by  an
       unqualified audit report for 2004/05 financial year.


     • The  Committee  thanks  all  provincial  MECs,  Members  of  the
       Provincial Legislatures and officials  of  the  departments  for
       their support and co-operation during the hearings.


     • The Committee also recognises the  cordial  reception  from  the
       Premiers of Northern Cape and Limpopo provinces respectively  as
       well as mayors of Johannesburg, Durban metropolitan councils and
       District Mayors of OR Tambo, Chris Hani and Alfred Nzo  District
       Municipalities  in  the  Eastern  Cape   and   Ulundi   District
       Municipality in KwaZulu-Natal.
     • The Committee further recognises the frankness and  constructive
       contribution  made  by   representatives   of   SALGA,   mayors,
       councillors,   beneficiaries   and   communities   during    the
       deliberations.


     • A tribute to South African Women in Construction (SAWIC) for the
       seminal role demonstrated in exhorting,  mobilising,  empowering
       and  effectuated  South  African  women  to  be  part   of   the
       challenging and  lucrative  construction  industry  through  the
       EPWP.


     • The Committee acknowledges with appreciation the  support  given
       by  the  IDT  to  the  Department   and   communities   in   the
       implementation of the EPWP at  Hlabisa  hospital  and  Zibambele
       road construction in Ndwedwe; KZN, and at Dutyini, Mount  Ayliff
       in Eastern Cape and Zivuseni in Gauteng.


     • The Committee appreciates  the  contributions  rendered  by  the
       Chairperson of the NCOP  Select  Committee  on  Public  Services
       during the information sharing in the advancement of the work of
       the two Committees.

Notwithstanding the above, o The Committee during its oversight visit observed with concern that in most provinces the intergovernmental and interdepartmental relations are still a challenge and recommends that Parliament and its committees must intensify the oversight role and promote the understanding, need and the importance of these relations as contained in chapter 3 of the Constitution.

         o It is evident that in some provinces the non-availability  of
           public  representatives  directly  and   indirectly   affects
           service delivery.


         o The visibility of all  public  representatives  at  national,
           provincial and local spheres of government  is  paramount  in
           making   the   necessary   interventions   and   assists   to
           disseminate  information,  monitor  and  evaluate  government
           programmes.


         o The co-ordination of the departmental programmes (i.e.  EPWP)
           and  non  co-operation  of  cluster  Departments  remains   a
           concern, the Committee recommends that  designated  officials
           by the NDPW to regional and local spheres of government  must
           be capacitated and resourced in order to effectively  improve
           the co-ordination and the implementation of the Programme.


         o The  Committee  further  recommends  that  the  regional  and
           provincial co-ordinators of the EPWP constitute  a  forum  to
           co-ordinate and monitor the implantations  of  the  programme
           thereby    strengthening    the     intergovernmental     and
           interdepartmental relations.


         o On assets and asset management the Committee  recommends  the
           Property Management Information System (PMIS)  being  a  data
           capturing and  an  early  warning  system  developed  by  the
           Mpumalanga, North West and Western  Cape  provinces  must  be
           considered as a case study by the NDPW.

INTRODUCTION

The report is structured to present a general trend and a consolidated perspective of all provinces rather than province-by-province. In some instances a specific mention of a province is highlighted to emphasise attention and action to be taken.

The Committee as required by the Constitution of the Republic of South Africa (1996), must ensure that the Department of Public Works carries out its mandate and responsibilities viz: - o Policy implementation at all spheres of government. o Monitor progress on service delivery and meeting of targets by the department as enunciated in the state of the nation address by the State President, the budget speech by Minister of Finance and, the Minister of Public Works’ strategic plan and budget vote speech. o Strengthening of the intergovernmental and interdepartmental relations. o Management and maintenance of state assets. o Monitor the Integrated Sustainable Rural Development Programes.

OVERVIEW

The main focus of the oversight was on the performance of the department in key areas of its responsibilities as set out hereunder: • The provision and management of land and accommodation to national departments and public institutions, • To give strategic leadership to the construction and property industries, • To co-ordinate and monitor the implementation of the EPWP and, • Adherence and conformity to the requirements of the Public Finance Management Act of 1999 (PFMA), Division of Revenue Act (DORA) and Municipality Finance Management Act (MFMA).

The period under review is from 31st January 2005 to 2nd September 2005.

The oversight report on the National Department of Public Works undertaken between 31st January 2005 and 2nd September 2005 is contained in the Committee report of the Department’s Annual report (please refer to Committee’s report on the Annual report of the Department).

FINDINGS

1. OVERSIGHT TO PROVINCES

   The Committee visited the following Provinces:

   1.1 Eastern Cape 31 January – 3 February 2005 The following delegation visited the province: Party Mr F Bhengu, Chairperson ANC Mr L Maduma, Acting Leader of the delegation ANC Mr M Magubane ANC Mr K Moonsamy ANC Ms MM Ntuli ANC Ms NM Mdaka UDM Mr S Opperman DA

   Areas and organisations visited: a) Met with Honourable MEC for Public Works: Mr S Kwelita. b) Met with the Department officials. c) Met with Amatola District Municipality and Mayor Mr S Somyo. d) Met with Chris Hani District Municipality and Mayor Mr M Sigabi. e) Visited Alfred Nzo District Municipality and Executive Mayor Mr GG Mpumza. f) Met with Chairperson of SALGA in the Province Mr S Somyo. g) Met with OR Tambo District Municipality and Executive Mayor Ms Z Capa- Langa.

   1.2 Free State –7-10 February 2005 The following delegation visited the province: Party Ms CMP Ramotsamai, Leader of the delegation ANC Mr HP Maluleka ANC Mr NJ Gogotya ANC Mrs TLP Nwamitwa-Shilubana ANC Mr JPI Blanche DA Mr MT Likotsi PAC Mr J Leburu Support staff Mr S Makeleni Support staff

   Areas and organisations visited: a) Met the Honourable MEC Mr S Mohai. (The MEC was part of the entourage). b) Met with officials from the department. c) Met with Thabo Mofutsanyana District Municipality and Executive Mayor Mofumahadi Mathokoana Mopedi. d) Met with the Maluti a Phofung Local Municipality. e) KM Mankwane Construction Road in Qwaqwa. f) Hydroponics (Agricultural) project in Qwaqwa. g) Tswarang Waste Management Project in Qwaqwa.

   1.3 Gauteng 31 January – 3 February 2005 The following delegation visited the province: Party Ms CMP Ramotsamai, Leader of the delegation ANC Mr HP Maluleka ANC Mr NJ Gogotya ANC Mr S Siboza ANC Mrs TLP Nwamitwa-Shilubana ANC Mr JPI Blanché DA Mr MT Likotsi PAC Mr J Leburu Support staff Mr S Makeleni Support staff

   Areas and organisations visited: a) Met with Honourable MEC for Public Transport, Roads and Works: Mr I Jacobs. b) Met officials of the Provincial Department of Public Works. c) Met with Mayor of Johannesburg Metropolitan Council: Mr A Masondo. d) Matengteng road and storm water canal project in Stinkwater, Tshwane. e) Zintombeni Taxi project in Bronkhorspruit. f) Poortjie Hospice in Region 11 of Johannesburg. g) Almac MPCC (learnership and skill development project) in Ekurhuleni. h) Bophelong Skill Resource Centre in Lekoa District. i) Working for Fire project in Culinan. j) Working for Water (alien vegetation clearing projects) in Silverton.

   1.4 KwaZulu-Natal – 7-10 February 2005 The following delegation visited the province: Party Mr F Bhengu, Chairperson ANC Mr L Maduma ANC Mr M Magubane ANC Mr K Moonsamy ANC Ms MM Ntuli ANC Mr S Opperman DA Ms NM Mdaka UDM Ms NP Nonkelela Support staff Ms P Kakaza Support staff

   Areas and organisations visited: a) Met with Honourable MEC for Transport in KZN Mr H Cele. b) Met with Honourable MEC for Public Works in KZN Mr Gwala. c) Met with officials from the department. d) Met with Mayor of Durban metropolitan Mr. O Mlaba. e) Visited King George Hospital project Presidential lead Project launched on 14 February 2004 for the rehabilitation and extension of the Hospital. f) Met with Deputy Mayor of Mkhanyakude District Municipality: Mr S Sibanda. g) Visited Zibambele and Vuk’Uzenzel Road maintenance programme in Ndwedwe. h) Visited Jozini – SANDF Base. i) Met with Ulundi Mayor Ms Z Magwaza. j) Visited Hlabisa Hospital (rehabilitation and extension). k) Visited State owned properties in Ulundi previously occupied the Departments of Justice and Correctional Services. l) Met with Amajuba Local Municipality Mayor Mlangeni in New Castle. m) Beneficiaries of EPWP.

   1.5 Limpopo 1-3 August 2005 The following delegation visited the province: Party Mr F Bhengu, Chairperson ANC Mr NJ Gogotya ANC Mrs TLP Nwamitwa-Shilubana ANC Mr TG Anthony ANC Mr S Siboza ANC Mr JPI Blanche DA Mr J Leburu Support staff Mr S Makeleni Support staff

   Areas and organisations visited:

   a) Met with the Honourable Premier of Limpopo: Mr S Moloto. b) Met with MEC for Public Works: Mr T Mufamadi. c) Met with Provincial Portfolio Committee. d) Met with Greater Sekhukhune District Municipality. e) Visited Mohlaletsi home-based care centre. f) Visited the Gundo Lasho projects. g) Visited the Tzaneen Municipality. h) Visited the agricultural project managed by women in Tzaneen. i) Visited CHOICE (Organisation that caters for people infected and affected by HIV/Aids) care givers project in Tzaneen. j) Imbizo in Polokwane (Beneficiaries of EPWP).

   1.6 Mpumalanga 6-8 June 2005 Committee Delegation visited the province: Party Ms. CMP Ramotsamai, Leader of the delegation ANC Mr L Maduma ANC Mr NE Magubane ANC Ms PS Sekgobela ANC Ms MM Ntuli ANC Mr S Opperman DA Ms NM Mdaka UDM Mr M Nguqu Support staff

   Areas and organisations visited: a) Met with Honourable MEC of Public Works in Mpumalanga: Ms C Mashego. b) Met with officials of the PPWD. c) Met with Provincial Portfolio Committee. d) Visited Thembelihle home community based care projects in the Nkomazi area. e) Visited Mbuzini and Thambokhulu land care projects in Mbombela district municipality. f) Visited Gutshwakop-Lubisi Road construction learnership and Skills transfer project in Mbombela district municipality. g) Visited Vukani Sisebente Community project in Mbombela district municipality. h) Beneficiaries of EPWP.

   1.7 Northern Cape 6-8 June 2005 The following delegation visited the province: Party Mr F Bhengu, Chairperson ANC Mr S Siboza ANC Mr TG Anthony ANC Mr JPI Blanche DA Mr MT Likotsi PAC Mr J Leburu Support staff Ms NP Nonkelela Support staff

   Areas and organisations visited: a) The Committee attended a provincial lekgotla hosted by Honourable Premier: Ms D Peters. b) Met with Honourable MEC for Public Works: Mr F Wyngaard. c) Met with the officials from the PPWD. d) Road paving project – Upington. e) Road curbing project – Keimoes. f) Road construction project – Kakamas. g) Gravel road construction at the Kgalagadi Transfrontier Park. h) Beneficiaries of EPWP.

   1.8 North West 9-10 June 2005 The following delegation visited the province: Party Mr F Bhengu, Chairperson ANC Mr S Siboza ANC Mr TG Anthony ANC Mr L Maduma ANC Mr NE Magubane ANC Ms PS Sekgobela ANC Ms MM Ntuli ANC Ms NM Mdaka UDM Mr S Opperman DA Mr JPI Blanche DA Mr MT Likotsi PAC Mr J Leburu Support staff Ms NN Nonkelela Support staff

   Areas and organisations visited: a) Met with Honourable MEC for Public Works: Mr H Yawa. b) Met Members of Provincial Legislature. c) Met with officials from the Department. d) Met with Councillors. e) Visited Modimola Road Maintenance Project phases one and two. f) Visited Mmabatho Paving Project. g) Imbizo (Beneficiaries of EPWP).

   1.9 Western Cape 1-2 August 2005 The following delegation visited the province: Party Ms CMP Ramotsamai, Leader of the delegation ANC Mr HP Maluleka, Acting Leader of the delegation ANC Mr L Maduma ANC Mr NE Magubane ANC Ms PS Sekgobela ANC Ms MM Ntuli ANC Mr S Opperman DA Ms NM Mdaka UDM Ms NP Nonkelela Support staff Ms N Chaso

   Areas and organisations visited: a) Met with Members of Provincial Legislature. b) Met the DDG EPWP: Mr B Gxilishe. c) Met HOD: Mr A Yasir. d) Visited Khayelitsha train station. e) Visited Marrydale Primary School. f) Visited Nonkqubela road construction. g) Visited Moreson road construction. h) Visited Droëhoewel road construction. i) Imbizo at Robertson city council (Beneficiaries of EPWP).

   1. Findings

   2.1 DEPARTMENTAL PROGRAMMES

   2.1.1 Asset Management and Maintenance (Movable and Immovable)

   a) Mpumalanaga, North West and Western Cape provinces have developed PMIS in an attempt to address the shortcomings within their asset management system. b) Provincial Departments do not have a consistent and accurate auditing system for both movable and immovable state properties. c) There is a critical backlog on the maintenance of state properties in the provincial departments. d) In most provinces the government properties are vacant, not properly maintained, have illegal occupants and are vandalised (ie in KwaZulu- Natal Jozini army base and government properties in Ulundi). e) The finalisation of land restitution in Limpopo and other provinces hinders the compilation and finalisation of the asset registers.

   2.1.2 Recommendations on Asset Management and Maintenance

   o The Mpumalanga, North West and Western Cape provinces asset management system initiatives should be taken as a case study to develop a holistic, accurate and reliable asset management system by the national and provincial departments.

   o Audit of all state properties utilised, under-utilised and unutilised including all military bases must be completed and an interim report be tabled to Parliament before the end of the first quarter of 2006/2007 financial year. The Committee is conscious and not undermining the fact that the Departments of Public Works and Land Affairs are conducting a vetting process. The Committee recommends that a uniform and centralised PMIS must be developed to address this anomaly.

   o An investigation and appropriate legal action should be instituted against all tenants who are unable to produce title deeds, certificates of occupation or lease agreements on demand.

   o Services in vacant government properties that are unoccupied and those occupied by illegal occupants must be terminated.

   o Lease and service agreements must be honoured by client departments and public institutions and defaulters be penalised.

   o A mechanism must be developed to cause individuals who are occupying properties belonging to the state, knowing and unknowingly to declare their occupation in order to qualify for indemnity and failure to disclose be punishable by law. o Cognisant of the fact that land restitution is still an ongoing process the finalisation of the asset register is dependent on the completion of the process.

   o There must be uniformity on the disposal of state assets in all spheres of government.

   o The NDPW must, in consultation with all other Departments in all spheres of government, develop a uniform disposal policy of all state assets.

   o Any disposal of government property, whether be at a national, provincial or local level of government, must be by agreement of all roleplayers.

   o The PDPW must have a disposal strategy for old and depreciated movable properties (ie plants and machinery). When auctioning takes place preference must be given to learner and emerging contractors.

   o The Committee recommends that the maintenance and renovation of state properties must fall directly under the EPWP to ensure that emerging contractors and contractors in the Incubator Programme are given preference.

   2.2 Expanded Public Works Programme (EPWP) 2.2.1 Launch of the EPWP in Provinces: • Eastern Cape Province launched the EPWP on the 3 September 2004, (Infrastructure Sector). • Free State Province launched the EPWP on the 28 September 2004, (Environment Sector). • Gauteng Province launched the EPWP on the 31 August 2004, (Infrastructure Sector). • KwaZulu-Natal EPWP launched the EPWP on the 28 August 2004, (Environment Sector). • Limpopo Province launched the EPWP on the 1 April 2005, (Infrastructure Sector). • Mpumalanga Province launched the EPWP on the 30 August 2004, (Economic/Agriculture Sector). • Northern Cape Province launched the EPWP on the 27 August 2004, (Infrastructure). • North West Province launched the EPWP on the 16 September 2004, (Infrastructure). • Western Cape Province launched the EPWP on the 1 April 2005, (Infrastructure/Building maintenance).

   2.2.2 The co-ordination of the EPWP

   The EPWP is driven by four Clusters viz: • Infrastructure; • Social; • Environmental & cultural; • Economic. The co-ordination and performance of the clusters varies from one province to another.

   2.3 Infrastructure

   The infrastructure cluster is leading in all provinces in terms of performance.

   A Eastern Cape

   o In Alfred Nzo District Municipality, the Rural Housing project, which manufactures bricks, has employed women and youth with the exception of people with disabilities. o In OR Tambo District Municipality, infrastructure projects (i.e. Vukuzakhe project - a rural housing and agricultural project which benefited 30 000 households) were not integrated into EPWP. o In Chris Hani District Municipality, women in construction stated that they were harassed and discriminated against in the industry and at the construction sites. o General complaints were levelled against the conduct and behaviour of government officials, who do not conform to Batho Pele. o Late payments were cited by emerging contractors as a general phenomenon.

   B Free State

   Women and youth with the exclusion of people with disabilities were involved in the construction of Mankwe Road in Qwaqwa.

   C Gauteng

   o Tshwane- Stinkwater road construction in Hammanskraal was badly constructed due to non-adherence to specifications by consultants. o The Almac local municipality in collaboration with the Infrastructure Cluster adopted and supported the multi-purpose centre situated in Almac (ie training of carpenters, welding, baking). o In Bara taxi and bus terminal, the Committee was briefed on the rehabilitation, upgrading and renovation of the terminals. o The Zithombeni Taxi Project in Bronkhorspruit needs to be constructed with water drainage system. D KwaZulu-Natal province

   o The Zibambele and Vuk’uzenzel road project are labour-intensive (road construction and maintaining projects) that created job opportunities for communities in Ndwedwe. o The Zibambele road project deliberately targeted and employed female- headed households. o Other labour-intensive projects benefited learners and emerging contractors and communities on the upgrading of King George Hospital and Hlabisa Hospital, (Hlabisa hospital is a Presidential lead project).

   E Limpopo province

   o The Committee is concerned that the Gundolasho road construction was constructed without curbing and this could lead to erosion. o The Committee is concerned that most provinces have not budgeted for road maintenance. o Across provinces a concern has been raised by emerging contractors regarding fronting and irregularities on the tendering processes, which also implicate government officials and that no decisive pre- emptive measures were in place.

   F Mpumalanga province

   o The Gutshwakop-Luphisi learnership programme imparted skills to learners on re-graveling, compacting, filling and drainage of a 300- kilometre road in Mbombela local municipality. o Vukasisebente community project in Mbombela local municipality caters for packaging facility of beverages and bakery, which imparts financial and management skills to beneficiaries.

   G Northern Cape province

                 o Upington road making and road paving.
                 o Keimoes road curbing.
                 o  Kgalagadi  Transfrontier  rehabilitation  and   road
                   construction project.  o All three projects had a reasonable involvement of women and youth but    the Committee is concerned about the lack of people with disabilities.  o The Councillors in Kakamas were not actively involved  or  unaware  of    the road construction projects that were taking place within their own    constituencies.  o The Committee observed that in most labour-intensive projects, workers    are not adhering to occupational health and safety standards.
   

   H North West province o Mmabatho CBD road paving projects (owned and driven by youth) must be promoted in other provinces. o The Modimola integrated flagship project driven by the Departments of Agriculture, Water Affairs and Public Works, has not been properly managed.

   I Western Cape province o The Saamstaan is a broad programme that includes road constructions (Nonkqubela, Môreson and Droëhoewel roads), renovations and maintenance of schools (Merrydale School) in Robertson. o The Klipfontein Corridor project encompasses the EPWP guidelines, which benefited 22 learner contractors in the Incubator Programme. o The Committee did not complete its visit and it will revisit the province during the course of 2006/2007 financial year.

   2.3.1 Recommendations on Infrastructure • Late payments to emerging contractors must be avoided by paying them according to the schedule of the projects.

   • The NDPW should look at the Regulations of the Preferential Procurement Policy Framework Act and consider which amendments could be effected to strengthen this Act.

   • The Committee recommends that the co-ordination and co-operation between NDPW and other departments at all spheres of government must adhere to contractual agreements entered into and payment must be made within prescribed period.

   • The Committee notes that the department is investigating fronting and therefore an interim report should be tabled in Parliament on all acts of fronting that have been investigated and corrective measures taken, on or before the first quarter of 2006/2007 financial year.

   • The department must assign dedicated inspectors to monitor and investigate fraudulent claims committed and shoddy work done by contractors and appropriate legal action be taken against perpetrators inclusive of blacklisting.

   • Whilst the Committee appreciates the progress made by the office of the MEC and the Department of Public Works in the Eastern Cape in addressing the discrimination against women, it is incumbent on all departments in all spheres of government to act against the violation of women’s rights at workplace.

   • Occupational health standards are not maintained and adhered to at EPWP projects (ie Kgalagadi Transfrontier Road and Chris Hani district municipality). The Committee recommends that the PPWD should continuously educate contractor workers about the importance of adhering to the occupational health and safety standards.

   • The NDPW must ensure that the Department of Labour assigns inspectors to enforce safety standards regulations.

   • The Department of Labour should ensure that protective clothing is supplied to potentially hazardous projects.

   • The Committee recommends that provinces must budget for maintenance of completed projects (ie Gundolashu road project).

   • The mismanagement of Modimola Integrated flagship project must be investigated and a report must be tabled in Parliament before the end of the first quarter of 2006/2007 financial year.

   • Consultants have committed to rectify the irregularities on the construction of the Stinkwater Road in Tshwane and to comply with Council decision. The Committee recommends that a report be tabled in Parliament on this before the end of the first quarter of 2006/2007 financial year.

   • The Committee is concerned about youth of school going age working at the EPWP projects. The NDPW in collaboration with the Department of Education must investigate the socio-economic circumstances contributing to this and make necessary interventions i.e. in Kgalagadi Transfrontier Road Project and other projects in Upington.

   2.4 Social Cluster o CHOICE, an established organisation in Tzaneen supported by the NDPW focusing on learnership and skills transfer to communities and home based caregivers of people affected and infected by HIV/AIDS.

   o It was reported that the University of Southern Africa would train the CDW and HCBC volunteers.

   o Training of Home Community Based Caregivers (HCBC), Early Childhood Development Educators (EDC) and Community Health Workers (CHW) is an ongoing process.

   o The Committee appreciates the collaboration between the Infrastructure and Social clusters in the establishment of the HIV/AIDS hospice in Poortjie.

   o The Youth of Christ in collaboration with the Social Cluster established HIV/AIDS Hospice at Poortjie.

   o The Infrastructure and Social clusters’ collaboration in support of the municipality of Thabong in the HIV/AIDS awareness project is commendable.

   o The establishment of Thembelihle Home Community Based Care Project (vegetable garden) in Mbombela has provided employment and skills to 300 caregivers volunteers for/to people with HIV/AIDS.

   2.4.1 Recommendations on Social Cluster

   • The Departments of Public Works, Agriculture and Forestry must assist the communities in Limpopo and other provinces in fasttracking and developing community gardens as part of the EPWP. • The Committee recommends that the PPWD should in consultation with Departments of Social Development and Health establish and or strengthen social cluster for the realisation of the objectives of the EPWP.

   2.5 Environment and Cultural Cluster

   The Committee commends the support the NDPW has given to the Working for Fire in Culinan and Working for Water and clearing of alien vegetation in Silverton.

   2.5.1. Recommendation on Environmental and Cultural Cluster

   Disaster management must be devolved to municipalities to form part of job creation for the local community within the EPWP Guidelines.

   2.6 Economy

   o In Limpopo the Agriculture project in Tzaneen spearheaded by women has benefited the local community with employment and skills. o In Free State the Hydroponics project in Qwaqwa should have benefited all involved with life skills and employment and therefore the NDPW should monitor its progress. o Provinces in general are still at the planning stage of implementing the EPWP in the Economic Sector.

   1. Incubator Programme

   • The Incubator Programme is inconsistent from province to province and the co-ordination and monitoring of the programme by the department is crucial in achieving the intended results. • Collateral required by financial institutions from the emerging contractors is a concern for most provinces and the NDPW must make necessary interventions. • The NDPW, private sector and institutions of higher learning must establish a joint venture whereby Built Environment graduates are placed on internships. • The NDPW in co-operation with PPWD in the Eastern Cape must ensure that the CIDB implements the Incubator Programme and further consider the reviewal of the programme. • The Committee commends the progress made on the learnership and skills transfer under the Incubator Programme. The Provincial Public Works Departments must from time to time consolidate, synchronise and update the data of all beneficiaries of the EPWP. • The short-term employment and the lack of sustainability of jobs created through the EPWP is viewed as constraint and a shortcoming. The Committee recommends the reviewal of the EPWP to accommodate long- term job opportunities. • The Committee recognises the short period that emerging contractors spent on the Incubator Programme. The NDPW should develop supporting mechanisms that would ensure sustainability of those contractors through NEPAD initiatives as they exit the programme.

   1. SALGA and Municipalities

   o The NDPW, PPWD and SALGA must assist, train and support the councillors in order to effectively fast-track government programmes and meet set targets. o Most municipalities were not sufficiently trained and briefed on the principles and guidelines of the EPWP and those that do, are inconsistent in the implementation thereof. o The NDPW in consultation with DPLG should assist municipalities with the integration of MIG in the IDPs within the EPWP. o The weaknesses observed in the local municipalities are unabated; the Committee recommends that the important complementary role played by the CDW must be clearly defined to avert unnecessary tensions at that tier of government. o The under-utilisation and depreciation of the Multi Purpose Community Centres (MPC) at most municipalities is common. The municipalities should budget for the maintenance of the MPC.

   1. Imbizo

   Matters and concerns raised at the Imbizos • Lack of budgeting for maintenance of EPWP infrastructure projects. • The involvement of the youth and people with disabilities in the construction industry is minimal • Unprofessional, poor dissemination of information and service rendered by the department officials is unacceptable. • The EPWP guidelines and information booklets are viewed as not assisting and not user-friendly. • Complicated and laborious tender documents were not user-friendly. • Fronting and alleged involvement of officials and councillors in irregular tendering processes. • EPWP Guidelines are restrictive regarding overtime and medical health benefits that should accrue to workers. • The EPWP does not provide sustainable employment. • There is lack of clarity and envisaged support for emerging and learner contractors when emerging from the programme.

    6. NEPAD Programmes
   

   The Committee recommends that the National Department of Public Works should develop a clear policy that defines its role in NEPAD.

   4 Conclusions

o Some public representatives have a challenge in understanding the concept and application of the EPWP. The current information booklet on the EPWP is inhibitive and lacks details.

o The role of the four sectors within which the EPWP operates must be clearly defined. Presently the work being done by the clusters is not well co-ordinated and an immediate intervention is needed.

o The bridging of the two economies through the EPWP must be clearly elaborated in the information booklets and pamphlets. o The variance between the Labour Relation Act and EPWP Guidelines must be clearly defined. The Committee is of the view that the Guidelines should be reconsidered to be in tandem with the Labour laws.

o Co-ordination at all spheres of government is still a challenge with regard to the intergovernmental and interdepartmental relations.

o Section 13-14 of DORA elucidates how provinces and municipalities could apply the Act and mechanisms in the maintenance of the infrastructure, which is a perpetual challenge.

o Some provinces do not have a conclusive and reliable immovable and movable asset register. This must receive immediate attention and control measures be instituted.

o Immediate attention as recommended by the Committee in addressing  the
  fronting  and  irregularities  in  the  tendering  process   must   be
  considered.

o The Committee notes that all provinces are striving to  implement  the
  EPWP by putting more emphasis  on  learnership  and  skills  transfers
  through CETA.

o The Committee further notes the commitment,  enthusiasm  and  benefits
  received by beneficiaries of this programme.

o The Committee commends the training received and quality of work  done
  by beneficiaries in various provinces despite logistical and  teething
  problems experienced.

o The Committee observed that some communities are continuing to benefit
  from the EPWP objectives by establishment of  own  businesses  ie  job
  creation and poverty alleviation.

o The NDPW must give effect to  the  involvement  of  women,  youth  and
  people with disabilities in the EPWP as emphasised by the Committee.

o  The  municipalities   must   take   control,   full   ownership   and
  responsibility of maintaining the multi-purpose centres.

o The Committee urges and encourages departments and  municipalities  at
  local levels to optimise the utilisation of the multi-purpose centres.

o The Tugela dam as a resource could benefit the communities with  water
  provision as immediate necessity and the  creation  of  jobs  for  the
  construction of the water infrastructure.

o In the Northern Cape Province co-ordination of the programme is in the
  office of the Premier, which is commendable.

• Due to the vastness of the Northern Cape province, the provincial officials travel long distances from one region to another. To save on travelling expenses, the Committee recommends that the existing regional offices be resourced and sub-regional offices be established where they do not exist.

  o As part of the EPWP the Departments of Public Works, Land and Agriculture, Forestry and Water Affairs and Provincial and Local Government in establishing agricultural projects to benefit the communities is encouraged.

  o Those departments that are not within the EPWP clusters must identify and commit programmes that will compliment the EPWP.

  o In the Free State province the Provincial Steering Committee (PSC) has been established to co-ordinate the implementation of EPWP and that the EXCO takes the total responsibility of the implementation of the programme.

o It is with appreciation that the empowerment of women is taking place ie one woman with no formal education in Mpumalanga supported by her child underwent the learnership programme of the EPWP and graduated. She has established her own construction company that provided job opportunities for her community.

o The Committee commends the Mpumalanga province for data capturing of
  all contractors and subcontractors as a best practice in the
  monitoring and exposing corrupt tendencies where some beneficiaries
  who were tenderers are repeatedly awarded tenders at the exclusion of
  new applicants.

1. Report of the Portfolio Committee on Public Works on Annual Reports of Department and Entities, dated 9 March 2006:

Committee Report

This is a report on the annual reports of the National Department of Public Works, the Independent Development Trust (IDT) and the Construction Industry Development Board (CIDB).

The structure of this report is as follows:

Glossary Introduction Findings Department programmes IDT CIDB Recommendations

Glossary BEE Black Economic Empowerment CETA Construction Education and Training Authority CIDB Construction Industry Development Board DDG Deputy Director-General DORA Division of Revenue Act EPWP Expanded Public Works Programme

IDT Independent Development Trust ISRDP Integrated Sustainable Rural Development Programme MFMA Municipal Finance Management Act NQF National Qualification Framework NPWP National Public Works Programme NDPW National Department of Public Works PFMA Public Finance Management Act PPP Public Private Partnership SALGA South African Local Government Association SETA Sector Education and Training Authority SMME Small, Medium and Micro Enterprises

1. Introduction

The Constitution of the Republic of South Africa mandates Parliament through House Committees to exercise the oversight function over the Executive, pass legislation and monitor the implementation of such legislation and encourage public participation.

Guided by the Rules of Parliament promulgated in terms of the Constitution to play an oversight role on the Ministry, Department and the Entities, the Committee has to scrutinise the annual report of the Department in order to see if the funds allocated have been spent correctly as per their strategic plans.

1. Report

The Report gives an analysis of the 2004/05 Annual Report of the National Department of Public Works (NDPW), the Independent Development Trust (IDT), the Construction Industry Development Board (CIDB), the Construction and Built Environment (CEB), the Construction Education and Training Authority (CETA) and comments from civil societies.

The Committee, as required by the Constitution of the Republic of South Africa (1996), must ensure that the Department of Public Works and Entities reporting to it carry out their mandates and responsibilities, viz: o Policy implementation at all spheres of government. o Progress on service delivery and meeting of targets. o Strengthen intergovernmental and interdepartmental relations. o Management and maintenance of state assets. o Monitor the Integrated Sustainable Rural Development Programes (ISRDP). o Whether entities carry out and comply with the mandate assigned by the Department.

The briefing by the NDPW and interrogation by the Committee focused on the responsibilities of the NDPW as set out hereunder: • Provision and management of land and accommodation to national departments and public institutions. • Leadership given to the construction and property industry by the Department. • Co-ordination, monitoring and the implementation of the EPWP. • Adherence and conformity to the requirements of the Public Finance Management Act of 1999 (PFMA) and the Division of Revenue Act (DORA). • Support given to Entities by the Department. • The role and the responsiveness of Entities to their assigned mandates.

1. Departmental Programmes

3.1 Administration

The Committee, having read and interrogated the Department’s annual report, reports as follows: ➢ On Human Resource

The Committee is concerned:


  about 1 074 vacant posts that have not been filled for the past two
       financial years;


  that the Department has retention strategy of personnel with skills
       and mechanisms in place to attract such skilled personnel.


• The Committee therefore recommends that there should be a full
  complement of staff to ensure a comprehensive service delivery and all
  vacancies budgeted for should be filled by the end of 2006/2007
  financial year.
• Complaints regarding late payments of emerging contractors is a
  concern. The Committee recommends that late payments be avoided and
  payments be made in accordance with the schedule of projects.
• The Committee noted that a contract with WSP Facility Management (Pty)
  Ltd was subsequently extended without convincing and sufficient
  reasons being given by the Department.
• The Committee recommends that monitoring and renewal of contracts
  outsourced be reconsidered and contractual agreements providing undue
  benefits be expunged.
• The Committee further recommends that the Department introduce an
  internship programme, which will be a partnership with the tertiary
  institutions in realisation of the turnaround strategy.
• The litigation process on outstanding debts must be processed within
  the prescribed period to avoid such debts being prescribed.

➢ Procurement
• On fronting and corruption, the Committee, cognisant of the fact that
  the NDPW is conducting an investigation, recommends that it be
  provided with an interim report regarding investigation as soon as
  possible.
• Intergovernmental and interdepartmental relations should be
  strengthened in order to address the complaints about the NDPW’s
  inability to perform.

3.2 Land, Accommodation and Maintenance

• The initiative of vesting process being conducted by the Department of
  Land Affairs in consultation with the Department of Public Works must
  be met as per timeframes suggested.
• On the consolidation of State assets register and disposal of
  immovable State property, the Committee recommends that:
    a) A disposal of State lands and properties be suspended until a
       Committee as setout hereunder has been established,
    b) A Committee constituted by the Departments of Public Works,
       Provincial and Local Government, Land and Housing be established
       to oversee the immediate finalisation of this process and
    c) A common and inclusive disposal framework be developed.
• The Committee recommends that there must be a moratorium on the
  disposal of State lands and properties until a joint consolidated
  disposal framework as proposed above has been finalised.
• When State land and/or property is to be disposed of, there must be
  extensive consultation with other Departments and consideration must
  be given to previously disadvantaged communities, such as women, youth
  and people with disabilities.
• The Committee commends the Department for contracting young graduates
  as built environment officers and their deployment to regional offices
  to verify the asset register information.
• The Committee commends the recent appointment of the DDG for Asset
  Management, which was long overdue.
• The Committee recommends that the Department must invite all people
  illegally occupying state property and land (without title deeds,
  deeds of sale, certificates to occupy and/or any other legal
  instrument) to declare the occupancy thereof within a reasonable
  period of time so as to avoid any legal action being taken against
  them.

3.3 NPWP

• The co-ordination of EPWP by the NDPW remains a challenge - the
  intergovernmental and interdepartmental relations must be strengthened
  in all spheres of government to realise the objectives of the EPWP.
• Through the institutional arrangements that are presently in place,
  there should be active engagement and commitment in the realisation of
  decisions made regarding the co-ordination of the EPWP.
• The Department must improve the capacity of the project managers that
  monitor the work of consultants.
• The unco-ordinated implementation of the Expanded Public Works
  Programme is perceived as an inability and/or failure of the
  Department to co-ordinate the Programme.
• The Committee recommends that the NDPW coordinate a national workshop
  within the first six months of the 2006/2007 financial year with
  cluster Departments, entities and other stakeholders to evaluate the
  programme.
• The Committee recommends that the Local Government SETA and
  Construction CETA embark on a joint venture for training of municipal
  officials and emerging contractors.
• In the spirit of intergovernmental and interdepartmental relations,
  the Committee recommends that provincial and municipal annual budgets
  provide, through Provincial Infrastructure Grants and Municipal
  Infrastructure Grants, for the maintenance of projects in accordance
  with guidelines as provided in DORA.
• The NDPW must continuously monitor and evaluate all the flagship
  projects in the nodal points jointly with IDT.

3.4 Financial Matters

• On financial matters:
 i)   Adherence to Public Finance Management Act;
ii)   Report of the Auditor-General; and    iii)   Debtor collection system and governance.
  The Committee appreciates the fact that the NDPW had an unqualified
  audit report, which signifies a commitment by the Department in its
  performance management.
• The Committee acknowledges interventions and co-operation made by the
  National Treasury in assisting the Department to improve its financial
  and accounting system.

3.4.1 Recommendations on Financial Matters

• It is commendable that the Department has adhered to the PFMA in their
  budgeting and as a result has avoided over-expenditure.
• The Committee is still concerned about the unauthorised expenditure
  and expects the Department to address this anomaly by the end of the
  2006/ 2007 financial year.
• The Committee notes that the Department ensured that client
  Departments are informed about their liabilities. However, the
  Department does not indicate how they are dealing with outstanding
  debts.
• The Committee recommends that the Department develop a yearly review
  of leases as a monitoring mechanism. 4. Entities

4.1 Independent Development Trust (IDT)

4.1.1 Responsibilities and function of IDT

As highlighted in their annual report: • Plays a crucial role in the government’s three flagship development initiatives: the Integrated Sustainable Rural Development Programme (ISRDP), the Expanded Public Works Programme (EPWP) and Project Consolidate. • Contributes in three specific areas of the national development agenda: Poverty reduction, the development of community capacity, and the reduction of infrastructure backlogs. • Manages programmes known as “special projects” on behalf of the National Department of Public Works (NDPW). In addition, the IDT manages projects for other departments, such as the Department of Social Development (the Poverty Relief Programme) and the Department of Provincial and Local Government (the Programme Design Document). • Plays an important role in the national development agenda. • Works towards being a fully transformed government development agency implementing projects commissioned to it by government departments.

4.1.2 IDT Projects

Some of the projects highlighted are:

1. Zivuseni Programme in KwaZulu-Natal has contributed to poverty reduction through the channelling of programme funds into local communities through employment, and the procurement of local contractors and emerging service providers.
2. In the Eastern Cape School Building Programme, 15% of funds were channelled to 9 985 people employed as local labour resources.
3. The Asisebente Programme in Mpumalanga has contributed to building the capacity of community members participating in infrastructure programmes. Training has been provided for local labour in skills such as carpentry, masonry and painting.
4. The Committee commends the financial management by the IDT and their compliance with the PFMA. It further appreciates an unqualified audit report the entity has received for a third year in succession, as this affirms the integrity and commitment with which it acts on its mandate.
5. In 2004/05, the IDT set up more than 344 new community structures and also project-managed, amongst others, the construction of hundreds of infrastructure projects across the country.
6. The IDT made a significant impact on the reduction of infrastructure backlogs across the country through the following: ➢ Construction of 75 schools in the Eastern Cape Schools Building Programme. ➢ Hlabisa Hospital in KwaZulu-Natal. ➢ 10 out of 25 Schools in KwaZulu-Natal have been completed. ➢ Repair and renovations to four libraries have been completed.
7. Regarding EPWP, the IDT has been instrumental in conceptualising its implementation plan for the infrastructure, and has signed agreements to support the delivery of various EPWP components at national and provincial levels.
8. Building institutional capacity and harnessing additional resources to enhance the impact and sustainability of the IDT’s initiatives.
9. Improving budgetary controls, procurement procedures and better programme accounting controls.

4.1.3 Recommendations

• The commitment displayed by the IDT in implementing projects
  commissioned to it by government departments warrants a consideration
  and reviewal of its status as a government development agency.
• As the report is silent on the IDT’s assigned responsibilities
  regarding ISRDP, the Committee recommends that the IDT table a report
  to the Committee in this regard for its consideration.
• The Committee recommends that the IDT should strengthen its
  relationship with SALGA in the capacitation of municipalities.
• IDT, DBSA, SALGA and all municipalities in partnership must drive
  Project Consolidate, EPWP and ISRDP in the realisation of targets set
  for 2010, 2012 and the millennium goals for 2014.

4.2. Construction Industry Development Board (CIDB)

• The Construction Industry Development Board is a statutory body
  appointed by the Minister of Public Works to provide leadership for
  industry growth, reform and improvement (CIDB Act 38 of 2000).

4.2.1 Aims and Objectives of CIDB • To transform and restructure the construction industry. • To regulate and develop a framework that builds the construction and delivers capacity for South Africa’s social and economic growth. 4.2.2 Key functions and responsibilities • Restructuring and transformation of the construction industry. • Empowerment of the historically disadvantaged and marginalised communities. • Improved industry standards of performance (quality, employment, skills, safety, health). • To develop procurement best practice guidelines. • Empowering SME contractors • To develop a construction charter.

4.2.3 National Construction Register Services The CIDB Act 38 of 2000 – • mandates the CIDB to establish the National Register of Constructors; • facilitates public sector procurement, delivery and risk management; • supports contractor development; • promotes better performance – improved quality, safety, health and environment; • categorises contractors according to their capability; • drive improving performance of contractors; and • promote client practices that shape a transforming, healthy and sustainable industry.

4.2.4 Recommendations

• The Committee, having interrogated the report and responses received
  from CIDB, appreciates the role played and commitment displayed in the
  development of the Construction Charter. Nevertheless, it recommends
  that the Construction Charter, as an instrument for transformation, be
  continuously reviewed in order to conform with government policies and
  changing construction environment.

4.3 Construction and Built Environment (CBE) • The report of the Department is silent on the role of CBE, so the Committee recommends that a report be tabled in Parliament in this regard before the end of the third term of the 2006/2007 financial year. • Since this particular entity also failed to submit its annual report to Parliament, the Committee recommends that CEB should explain why it did not submit its annual report as required and further calls on it to do so within one month of the tabling of this report.

4.4 Construction Education and Training Authority (CETA)

• The Department’s annual report is silent about the inputs and outputs
  of Construction CETA as an integral part of the Department’s
  developmental programmes (ie EPWP).
• The Committee recommends that the Department must table a report
  before the end of the first quarter of the 2006/2007 financial year
  regarding the role played by Construction CETA during the 2005/2006
  financial year.

4.5 Comments and recommendations by civil societies

4.5.1 Submission by South African Women in Construction

• Women and BEE process
➢ Equality and Equity are the cornerstones of our democracy, yet women
  have still not been major beneficiaries of the BEE process. Whilst
  there are signs of professional development amongst women, this should
  not be mistaken as an indication of women’s economic participation.
➢ Empowering women, and in particular black women, is an economic
  factor. By empowering a woman, government is including the whole
  family in the economic uplifting, resulting in an automatic multiplier
  effect.
➢ Women and infrastructure development (ie capacity building)


• Women and State-owned Enterprises
➢ This will include sharing business plans of state-owned enterprises,
  indicating how they will ensure that a specific percentage of the
  allocated spending goes to women, and whether it is supplier
  development, enterprise development or skill development of women.


• Women and Infrastructure National Training Programme
➢ Specifically targeting women in Construction, the programme will be
  aimed at producing artisans, from plumbers to painters and
  boilermakers - all the skills that women do not have - so that as the
  rollout occurs, women will be available with those skills. Project
  management skills will be a priority in partnership with international
  agencies through the exchange programmes.
➢ Build expertise of women in land and property acquisition and partner
  with academic institutions to bring in young architects. In addition,
  women’s sectors such as property, construction and housing must be
  targeted to play a major role in these sectors. The ministry of
  housing as well as the ministry of public works should facilitate the
  process as part of ASGI-SA together with relevant institutions.
• Maximise Codes of Good Practise and the Sector Charter Benefits for
  Women
➢ Introduce an overall 30% quota as part of standardising women’s
  participation and representation in various ares of the scorecard and
  business sectors. This will strengthen the current policy and
  implementation process. This also means that the BEE Construction
  Charter must be revisited to introduce 30% quota and to focus mainly
  on tender acquisition.


• Identify Government Procurement Areas that can be reserved for women
➢ This will include identifying government work areas where women’s
  services can be accessed. Coupled with this should be the introduction
  of the 30% quota as a national measure for national government’s
  overall procurement policy. This should be part of the urgent
  amendment of the preferential procurement act (PPPFA Act).


• Introduce a national Procurement Training Course for Women
➢ As part of the National Skills Programme. SETA’s work with the
  National Committee of Business Women’s Organisations (NCBWO ) on how
  best to target women in business together with relevant government
  departments. This will also focus on the ABC’S of engaging in BEE
  deals.


• Access to finance
➢ Facilitating easy access to finance remains the greatest challenge to
  those of the second economy; it is even worse with women.  ASGISA’s
  objective of mainstreaming women in all activities is also faced with
  this challenge. In fast-tracking women in construction, special
  interventions would be appreciated, as this is an integral issue for
  growing and sustaining women-owned and -managed enterprises in South
  Africa.


• Skilled positions by black women characterise the financial sector.
  The following interventions are proposed:
➢ Introduction of the 30% quota
➢ This should be implemented immediately by revising the current
  criteria set for accessing all government finance institutions and
  programmes. These should include targeting the IDC, NEF, KHULA, APEX,
  MAFISA, the Land Bank and Business Partners.
➢ The committee on disposals needs to be established and civil society
  must be represented in that committee, with more emphasis on
  representation of the vulnerable groups.
➢ Introduce an overall 30% quota as part of standardising women’s
  participation and representation in various areas of the scorecard and
  business sectors. This will strengthen the current policy and
  implementation process. This also means that the BEE Construction
  Charter must be revisited to introduce 30% quota and this to focus
  mainly on tender acquisition.

4.5.2 Recommendations

• The Committee recommends that the Department considers these
  recommendations made by SAWIC in consultation with women in
  construction.
• The Committee further recommends that 30% quota as part of
  standardising women’s participation and representation in various
  areas of the scorecard and business sectors as proposed by SAWIC be
  increased to 35%.

Conclusion

The Committee recommends that in future IDT, CIDB and CBE submit to Parliament their strategic plans at the beginning of each financial year. This is to ensure that the achievements as detailed in the Annual Report are benchmarked against the performance and outputs as stated in the Strategic Plan.

The Committee expresses its gratitude to all South Africans, with specific emphasis on organisations, entities, communities, associations and individuals who sacrificed their time to come and make presentations before the Committee.

Report to be considered.

[1] Transcript, p4